Paytm declared to cancel 2000 Cr pre-ipo on the valuation of 20 billion.
The Indian digital payments pioneer Paytm is considering scrapping the proposed Rs 2,000 crore share sale ahead of its initial public offering (IPO) over valuation differences, according to people familiar with the development.
The firm had been seeking a valuation of above $20 billion based on initial investor feedback, while advisers on the deal recommended a lower pricing. The company was last valued at $16 billion, according to unicorn tracker CB Insights.
Banks including Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and ICICI Securities Ltd. are running the share sale. Paytm may consider a pre-IPO placement of as much as Rs 2,000 crore, it had said in the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi) on July 16.