Paytm board has passed the IPO plans in the yesterday's meet. Paytm is planning to raise Rs.21000 from the IPO. This would be the largest IPO in the history of Indian stock market. Some of the biggest IPOs of all the time were Reliance Power of 11,500 Crores in 2008; General Insurance of Rs.11372 Crores in 2017; SBI Card of Rs. 10354 Crores and many more. But this much big IPO size is coming first time. Paytm which was started in the year 2008 carries the business to provide Telecom based value-added services to various telecom operators across the Territory, Payment gateway aggregator services, Ticket services, Utility bills payments, Insurance, Hotel booking services, Stock Broking etc. They got a real boost in their sales during demonetization in 2016. Financial Performance (Fig. in Cr)

Year	Revenue	PAT
2017	780	-900
2018	3314	-1604
2019	3579	-4172
2020	3350	-2833

The company’s overall expenses were reduced by 20 per cent in 2019-20 to Rs 5,861 crore compared to Rs 7,254 crore in the previous fiscal year. Paytm’s revenues also fell slightly (1 per cent) to Rs 3,350 crore in FY20.The company’s overall losses at PAT levels reduce  from Rs 4172 crore in FY19 to Rs 2833 crore in the FY20. This shows that company has taken measures to reduce the expenses. Valuation As per media news, the Paytm is eyeing an valuation of $25 Billion and this translate into Rs.1.875 Lakh Crores of Mcap. Last to last year in the month of Nov-2019, Paytm has raised funds at $16 Billion dollar valuation ( at that time share value was ~18000 ). So, at $25 Billion dollar, the valuation of share comes out to be ~28000-30000 per share. Before the IPO, bonus share issues will going to happen to reduce the share price to make it fit for the IPO.