Paytm Got Approval To Raise Rs 16000 Crore From IPO, From Shareholders
- ByAyushi Ray | July 13, 2021
Before IPO, Paytm got approval to raise Rs 16000 crore from IPO, from shareholders. Shareholders have also allowed Rs 12000 crore fresh equity for the company. The Gurugram-based fintech unicorn is expected to release its draft red herring prospectus (DRHP) later this week, although a Reuters report stated it would file it on July 12, after its AGM meeting. Shareholders also approved the removal of the ‘promoter’ tag for Vijay Shekhar Sharma to comply with rules set out by the Securities and Exchange Board of India (SEBI) – which Paytm had proposed in its letter to the shareholders. Paytm’s much anticipated IPO is to happen in November, and it will be the second company filing for IPO this year after Zomato. Paytm had also been continuously reshuffling it’s board directors ahead of IPO, wanting a fresh start after the company goes public.
Paytm’s IPO is expected to have a secondary element of around Rs 4,600 crore—where investors will sell their stake directly through the exchanges during the IPO. This is likely to take the total offer size to Rs 16,600 crore, according to a close source. The shareholders who attended the EGM include Paytm’s current and ex-employees as well as its investors—institutional and individuals. They also approved other resolutions aimed towards preparing the firm for the IPO such as finalising the ‘Articles of Association’ as well as changes to its Employee Stock Options Plans as per regulatory norms, the sources added. The company is seeking a valuation in the range of $24-$30 billion, according to sources. The startup, which is backed by China’s Alibaba and Japan’s SoftBank, is currently valued at $16 billion. Ant Group and Alibaba own nearly 38% of One97 Communications, Paytm’s parent entity. SoftBank holds 18.73%, while Elevation Capital (formerly SAIF Partners) has a 17.65% stake.
Follow Startup Story
Related Posts
