Fintech major Paytm is moving closer to its initial public offering (IPO) as it has sought shareholders’ approval to sell new shares worth Rs 12,000 crore in its IPO, as per an official communication sent to shareholders. Paytm’s parent One97 Communications Ltd, is expected to launch its IPO in November this year.
A notice sent to shareholders stated the share sale proposal and others would be put to vote at an Extraordinary General Meeting (EGM) on July 12. The EGM will also resolve to consider and approve the declassification of Vijay Shekhar Sharma from his status as a promoter of the company.
“The company proposes to create, offer, issue and allot fresh equity shares of the company of face value of ₹1 each of the company (the “equity shares”) up to an aggregate of ₹12,000 crore. The proposed offering is likely to include a fresh issue of the equity shares by the company and an offer for sale by certain, existing shareholders of the company,” the notice said.
Paytm’s board cleared the new share sale plans on June 14, and named JPMorgan Chase and Co., Goldman Sachs, Morgan Stanley and ICICI Securities Ltd as lead managers to the IPO.
One97 Communications Ltd is currently India’s second highest-valuation startup worth USD16 billion.