One97 Communications Ltd, the parent of Indian payments firm Paytm, will file a draft prospectus as early as July 12 for a domestic initial public offering (IPO) that seeks to raise $2.3 billion, two sources close to the matter said on Monday.

The money will be raised via sale of new Paytm stock as well as secondary offering of shares at an expected valuation of $24 billion to $25 billion with an option to raise the amount at a later stage if required, the sources said, declining to be named as the matter is not public.

The prospectus will be filed shortly after Paytm's extraordinary general meeting (EGM) of shareholders in Delhi on July 12, the sources added.

Paytm, which counts China's Alibaba and Japan's SoftBank as backers, is seeking shareholder approval at the EGM to sell up to 120 billion rupees ($1.61 billion) in new stock and have an option to retain an over-subscription of up to 1%.

The company has hired JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank for the IPO, the sources said.