One 97 Communications — the parent company of digital payments giant Paytm — has reportedly decided to scrap off its pre-initial public offering (IPO) sale over valuation differences. The company is seeking a valuation of over $20 billion based on the feedback of its initial investors. However, advisors have recommended it to go for a lower valuation.

The company is seeking a valuation of over $20 billion based on the feedback of its initial investors. However, advisors have recommended it to go for a lower valuation. The development was first reported by Bloomberg.

A source aware of the development told Business Insider that Paytm has decided to do away with the pre-IPO round in order to adhere to the timeline it set for itself. Besides this, the company source highlighted that they are not aware of any valuation difference between the investors and Paytm’s management.

Meanwhile, the Bloomberg report suggests that Paytm may still go for a pre-IPO sale at a lower valuation.

Business Insider India has reached out to Paytm seeking more detail about the report and cancellation of their pre-IPO sale.

Previously a Bloomberg report had highlighted that Paytm is planning to raise $270 million (₹2,028 crore) from its pre-IPO round.

Pre-IPO is an option for companies to raise capital from private investors before the public issues. It’s not a mandatory requirement and companies can choose to opt for it based on their requirements.

Paytm is planning to raise ₹16,600 crore ($2.2 billion) through this IPO. Half of this capital would be raised as a fresh issue and the remaining will be a secondary issue, giving partial exits to Paytm’s investors.

This will be India’s biggest IPO so far, surpassing Coal India’s, which raised ₹15,000 crore in October 2010.

Securities and Exchange Board of India (SEBI) is yet to approve the IPO.

Paytm is one of the biggest digital payments companies in India with offerings across several digital modes of payments like unified payments interface (UPI), credit and debit cards payments. It also offers wealth management solutions through Paytm Money and banking services through Paytm Payments Banks.

The company is currently valued at $16 billion, after raising $1 billion in November 2019 from T Rowe Price, Ant Group and Softbank Vision Fund. According to several media reports, Paytm is expected to be valued somewhere between $25 billion to $30 billion post issue