Softbank upbeat on Paytm's IPO bet
Group founder Masayoshi Son hopeful on IPO valuation to make bank’s 20% investment a profitable exit and largest from India after Flipkart
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Bengaluru: Softbank Group, one of the top backers of fintech firm Paytm, is bullish on the prospects of Paytm's ongoing IPO that opened for subscription on Monday.
Post the earnings announcement, Softbank Group's Founder and CEO, Masayoshi Son said: "The IPO should be a great event for the Japanese investment major."
"I believe Paytm should grow significantly and valuation-wise. Of course, it depends on market conditions and investors' appetite," Son told reporters. "Either way, I believe the valuation (of Paytm during the IPO) should be bigger than the cost that we spent when we made an investment (in the company). So for us the IPO should be a great event," he added. He was answering to queries on whether Paytm's IPO valuation of around $20 billion was less than expected.
"I believe they (Paytm) can grow their value going forward (after the IPO) not only Paytm, but there are other businesses that we have high expectations of," Son added.
SoftBank currently owns around 20 per cent of Noida-based Paytm and plans to offload shares worth Rs1,689 crore as part of the Rs10,000 crore offer for sale (OFS) in Paytm's IPO that closes on November 10.
If the ongoing IPO of Paytm becomes successful, then it will provide Softbank its largest exit from India after Flipkart.
The Rs18,300-crore IPO of Paytm had been subscribed 18 per cent on Monday (November 8), the first day of bidding. The portion set aside for retail investors was subscribed 78 per cent, while the reserved portion of non-institutional investors was subscribed two per cent.
