The company will also, in its July 12 AGM move a resolution to de-classify Vijay Shekhar Sharma as the promoter of the company.
Payment and wallet platform Paytm’s parent company One97 Communications has decided to raise Rs 12000 crore by issuing fresh shares (IPOs) and a meeting will be held with shareholders on July 12 to officially finalize the same.
Paytm had received in-principle approval from its board to go for a $3 billion initial public offering (IPO), the biggest in India.
“The company wants to sell Rs 12,000 crore ($1.61 billion) in new shares plus a potential 1% for over-allotment,” according to Bloomberg.
The company will also move a resolution to de-classify Vijay Shekhar Sharma as the promoter of the company. It will also propose a new set of articles of association (AoA) to conform to the requirements prescribed by bourses prior to the filing of the draft red herring prospectus with the Securities and Exchange Board of India (SEBI).
Paytm’s shareholders include Alibaba’s Ant Group (29.71 percent shares), Softbank Vision Fund (19.63 percent), Saif Partners (18.56 percent, and Vijay Shekhar Sharma (14.67 percent).
Also Read: Are The Rich Taxed Enough?
Earlier this month, Paytm asked its workers to formally declare if they wanted to sell stock as part of the public offering, according to reports. The declarations would be required before the company finalizes its prospectus, expected to be submitted to the regulator in early July. The startup has hired four banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. for the IPO, Bloomberg said.
Paytm reported revenue of Rs 3186.60 crores for FY21. This revenue growth is led by the fact that Paytm has been building a multi-stack payment platform, with several funnels of growth. Paytm’s losses have dropped by 42%, from Rs 2,942.36 crore in FY20 to Rs 1,701 crore in FY21. The annual revenue has also shown has crossed Rs 2,100 crore in the previous financial year.
The company has built several payment instruments including Paytm Wallet, Paytm UPI, Paytm Payments Bank account, Paytm Postpaid, Paytm FASTag, Paytm Food Wallet, Paytm Wealth Management accounts, credit and debit cards among others.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
