New Delhi (Anish Yande): The parent company of Paytm, One97 Communications is looking to raise Rs 12,000 crore in fresh equity. The digital payments platform would be planning to raise the amount through its upcoming initial public offering. Check all details of the upcoming Paytm IPO here.
Paytm to raise Rs 12,000 crore via fresh equity:
The company would be holding an extraordinary general meeting (EGM) of shareholders to be held on July 12. Ahead of the meeting, Paytm has stated that 'the amount being raised pursuant to the fresh issue aggregates up to Rs 12,000 crore.' The company also considers an option to retain an over-subscription to the extent of 1% of the net offer.
Paytm had inquired to its employees whether they would sell their shares ahead of the IPO. The digital payments platform is expected to file the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) within the next month.
One97 Communications Ltd is aiming to raise its valuation up to $30 billion through the IPO. Following the successful execution of Paytm's IPO, it would become the largest market debut of a company in India ever.
Paytm founder to offload stake through IPO:
According to the company, the founder of Paytm, Vijay Shekhar Sharma has written to the board of One97 Communications regarding the declassification of his status as a promoter. The founder holds 9,051,624 equity shares in the company.
The stake of the founder amounts to 14.61% of the total paid-up equity share capital. The rest of the paid-up equity share capital of the company is held by various institutional investors, other third parties and employees, ex-employees. Ahead of the IPO, Paytm has an aggregate of over 1,000 shareholders.
Paytm’s plan for launching IPO had received in-principle approval from the company's board in May. Leading investors such as SoftBank Group Corp, Berkshire Hathaway Inc., and Ant Group C are investors in the digital payments startup. Recently, Paytm has hired JPMorgan Chase & Co, ICICI Securities, Morgan Stanley, Goldman Sachs as bankers of the issue.
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