Paytm gets shareholders’ nod for IPO
BENGALURU: The shareholders of One97 Communications Ltd., (OCL) have approved plans of its ₹16,600 crore initial public offering, put to vote, at the extraordinary general meeting held on July 12, according to two individuals aware of the discussion.
OCL will release its draft red herring prospectus (DRHP), later this week, said one of the people quoted above.
One97 Communications, which owns brand Paytm will look to raise up to ₹12,000 crore (roughly $1.6 billion) via fresh issue of shares and another secondary raise of ₹4,600 crore during its November-end IPO, shareholders agreed.
Mint first reported on May 31 that Paytm was looking to raise $1 billion-1.5 billion by selling new shares to qualified institutional buyers. The primary issue is solely to infuse growth capital in the 11-year-old entity, sources told Mint earlier.
Shareholders also approved the proposal that founder Vijay Shekhar Sharma, would not be identified as the ‘promoter’ of the company. This is to comply with Securities and Exchange Board of India (Sebi) rules requiring promoters of listed firms to have at least 20% of post-issue capital.
Sharma holds 9,051,624 equity shares of One97 Communications, amounting to 14.61% of its total paid-up equity share capital. Sharma will continue to be the chairman, managing director and chief executive officer (CEO) of the company.
Shareholders also approved the company’s new Articles of Association, which includes changes to its board and other rights of shareholders.
The changes are to bring the articles closer to a public listed company, a second individual said.
At present, Paytm has about 1,000 shareholders, broadly held by various institutional investors, employees, former employees and others.
Earlier this month, Paytm’s parent, One97 Communications Ltd, reshuffled its board ahead of the planned public offering replacing Chinese nationals with Indian and US nationals.
OCL brought in Douglas Lehman Feagin, senior vice president, at Ant Group to its board replacing Ant Group chairman and chief executive officer, Jing Xiandong.
Industry veteran Ash Lilani, managing partner at Saama Capital and who was earlier the head of global markets at Silicon Valley Bank (SVB) was also appointed as an independent director to the company.