According to an industry source, Paytm, a digital payments and financial services company, has received in-principle approval from its board of directors to raise roughly Rs.22,000 crore through an initial public offering (IPO) in the October-December quarter of this year.

The IPO, which is expected to be discussed at the company's board meeting on Friday, is expected to have an enterprise value of over Rs.2 lakh crore.

Last week, a meeting was held by the company’s board of directors, which discussed that, if the company meets its target, it will be one of India's largest IPOs.

Alibaba's Ant Group at 29.71 percent, Softbank Vision Fund with 19.63 percent, Saif Partners has 18.56 percent and Vijay Shekhar Sharma with 14.67 per cent are amongst its shareholders.

Berkshire Hathaway, AGH Holding, T Rowe Price, and Discovery Capital each possess less than 10 percent of stake in the company.

With over 1.4 billion monthly transactions, Paytm claims to be 30-50 percent larger than mobile apps in the segment.

In the fiscal year 2019-20, the company reported a 40 percent decrease in loss and a 40 percent increase in sales to Rs 3,629 crore on a year-on-year basis.

"Paytm's board of directors has given its approval in principle for the massive IPO that will take place in the October-December quarter. The IPO is expected to garner between Rs 21,000 and Rs 22,000 crore for the company. This will also allow some existing investors to sell a portion of their holdings”, according to a source familiar with the situation told PTI.

Previously, according to persons acquainted with the situation, the company’s Paytm Payments Bank declared that it will no longer allow consumers to purchase and sell crypto assets on its platform when it stops interacting with cryptocurrency exchanges.

PayPal and other payment processing providers that allow bitcoin purchases on their systems, according to the individuals, may also pull the plug.

According to a PayPal spokeswoman, PayPal and Venmo's crypto services are only available in the United States. Following an informal recommendation from the Reserve Bank of India, most banks suspended ties with cryptocurrency exchanges such as WazirX, BuyUCoin, and Zebpay earlier this week.

“Paytm Payments Bank's support will terminate tomorrow EOD (end of day),” according to the CEO of a bitcoin exchange. He claims the firm has not formally stated why this is occurring or whether it is tied to a regulatory issue.

According to numerous top cryptocurrency exchanges, a number of payment processing providers have announced their intention to withdraw service.

Payment processors have been told not to engage with cryptocurrency exchanges by the RBI, according to insiders. Payment gateway companies have not received any written directives from the central bank, and banks have not received any either.

The removal of Paytm comes following a period of high volatility in cryptocurrencies, particularly Bitcoin.