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IPO-bound Paytm receives shareholder nod

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Digital payments major Paytm has reportedly received approval from shareholders for India’s biggest public offer of Rs 16,600 crore at the company’s Extraordinary General Meeting (EGM).
The shareholders have further approved raising of Rs 12,000 crore during the IPO and sale of secondary shares will take the total amount to Rs 16,600 crore.

The shareholders have approved the proposal to raise capital and the fresh issue of shares of up to Rs 12,000 crore during
the IPO. The secondary raise will bring the total to Rs 16,600 crore, PTI quoted an unnamed source as saying.

The company is expected to file documents for the IPO this week.

The proposal that Paytm founder Vijay Shekhar Sharma would
not be identified as the promoter of the company but will continue to be its chairman, managing director and chief executive officer, also received shareholder nods.

“As per SEBI rules, Paytm is a professionally managed company. No shareholder can have special rights; that is just how listed companies need to be in India,” the source added further.

With this valuation range, Paytm is expected to be among top 10 listed financial services in the country. The valuation of the firm is likely to be in the range of Rs 1.78 lakh crore to Rs
2.2 lakh crore.

Paytm shareholders include Alibaba’s Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), SAIF Partners (18.56 per cent) and Vijay Shekhar Sharma (14.67 per cent). AGH Holding, T Rowe Price, Discovery Capital and Berkshire Hathaway are other shareholders in the company.