Digital payment and Fintech giant Paytm is all set for its initial public offering after its parent, One 97 Communications, has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) on Friday. The Softbank-back Paytm is looking to raise over $2.3 billion (about Rs 16,600 crore) via its primary offering. Paytm IPO was much awaited after a sharp 2.5x move in the prices of unlisted Paytm shares. At the current issue size, Paytm's IPO will be the largest ever primary offering by any Indian company. It is followed by SBI Cards (Rs 10,355 crore) and recently concluded Zomato (Rs 9,375 crore) The company's IPO will consist of fresh equity worth Rs 8,300 crore, with a face value of Rs 1 each. The remaining 50% of the offering will be an offer-for-sale by the existing shareholders. Existing investors, including the founder and CEO Vijay Shekhar Sharma, Ant Financials, Jack Ma's Alibaba Group, and Warren Buffet's Berkshire Hathaway will offload a portion of their stake in the company. Elevation Capital and Saif Partners will also sell their shares in the book-building process. The company has mentioned itself as a professionally managed entity, with no identifiable promoter. At this issue size, it would be the largest issue of the country. It has recently declassified the founder Vijay Shekhar Sharma as the promoter of the company. The Noida-based company said it would use the IPO proceeds to strengthen its payment ecosystem and for new business initiatives and acquisitions. The company has reserved some of the stakes for eligible employees. 75%  of the net offer has been reserved for qualified institutional buyers (QIBs). The company may allocate up to 60% QIB portion to the anchor investors. Non-Institutional Investors (NIIs) are given 15% allocation on a proportionate basis of the net offer, while the retail individual investors will get merely 10% of the allocation. Morgan Stanley India Company, Goldman Sachs (India) Securities, Axis Capital are the joint global coordinators and Book Running Lead Managers for the issue. ICICI Securities, JP Morgan India, Citigroup Global Markets India, and HDFC Bank have been appointed as the BRLMs of the issue. Link Intime India has been appointed as the registrar for the issue. Financial Health According to the annual report of Paytm, the digital payments firm has narrowed its consolidated loss to Rs 1,704 crore in the financial year 2020-21 from Rs 2,943.32 crore in fiscal 2019-20. This can be translated as a 42.1% decline in losses. However, the total revenue of the company declined 10% to Rs 3,186 crore in FY 2020-21 compared to Rs 3,540.77 crore in the previous financial year. The company has reported a narrowing of loss for the second consecutive year in FY21. Paytm slashed marketing costs by about 62% to Rs 533 crore in FY21 from Rs 1,397 crore a year ago. Paytm recorded an 11%  increase in payments and financial services revenues at Rs 2,109 crore in FY21 compared to Rs 1,906 crore in FY20.