One97 Communications, the parent company of digital payments and financial services platform Paytm, has filed its draft papers with market regular SEBI to raise Rs 16,600 crore through its much-awaited initial public offer (IPO). 

According to the details given in the Draft Red Herring Prospectus (DRHP), the company is planning to raise Rs 8,300 crore through fresh issue and another Rs 8,300 crore through Offer For Sale (OFS) from its existing investors. 

Through the OFS route, shares would be sold by Paytm’s founder Vijay Shekhar Sharma, Alibaba.com Singapore, Ant Financial (Netherlands), Elevation Capital, Saif Partners, SVF Panther (Cayman) and BH International Holdings, the DRHP showed. 

The document has not provided any details on the share price and the stake which is to be diluted by the existing shareholders. 

Once the draft is approved by the SEBI, Paytm can proceed further with its IPO. The market regulator’s observation is necessary for any company to launch any public issue such as IPO, follow-on public offer (FPO) and rights issue. 

Paytm becomes the latest of the internet-based companies looking to join stock exchanges following the likes of Indiamart, Easy Trip Planners and most recently Zomato. 

The net proceeds from the issue would be used towards growing and strengthening Paytm’s ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services; investing in new business initiatives, acquisitions and strategic partnerships; and general corporate purposes, the company has said in a communiqué to the media.