One97 Communications, the parent company that houses Paytm and its fintech offshoots, has received authorisation from India's markets regulator to undertake the country's largest initial public offering (IPO).

The Securities and Exchange Board of India (Sebi) is expected to make an official announcement later today or over the weekend. Paytm can now proceed with its Rs 16,600 crore IPO after taking into account any comments made by Sebi in the company's draught red herring prospectus (DRHP). According to insiders, a listing is expected in early November.

The Sebi's permission for the Paytm IPO comes at a time when a wave of new-age online companies have either listed or are in the process of doing so. In July, Zomato Ltd. went public on the BSE and the National Stock Exchange, while Freshworks Inc., a company with Indian roots, went public on the Nasdaq. Nykaa will go public on October 28, and PolicyBazaar, MobiKwik, Pine Labs, and Delhivery are all planning IPOs.

Given the size of the offering and the company's position in the country's fintech ecosystem, the Paytm IPO might be as significant as Zomato's. The company intends to raise up to Rs 8,300 crore by issuing new stock and roughly the same amount through an offer for sale in which some investors would sell their shares.

Paytm's IPO has sparked interest from the likes of Canada's CPPIB, US-based asset manager Alkeon Capital, and Morgan Stanley and Goldman Sachs funds. The new investors join a group of investors in talks to invest in Paytm's anchor investment as well as its first public offering (IPO).

The Vijay Shekhar Sharma-led company is seeking a valuation of $20-22 billion in the IPO, according to reports. When it previously sought cash two years ago, the corporation was valued at roughly $16 billion. Ant Group, Alibaba, Elevation Capital, and SoftBank Vision Fund are among the fintech startup's primary investors.