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Setting the stage for its listing, shareholders of One97 Communications, the parents of Paytm, are understood to have cleared the proposal for its initial public offering (IPO).
The digital financial services firm held its extraordinary general meeting (EGM) on Monday.
Sources said the IPO will include a fresh issue of shares to raise ₹12,000 crore as well as a secondary issue of shares of about ₹4,600 crore. The total issue size would be ₹16,600 crore. Paytm is expected to file its draft red herring prospectus soon and is likely to launch its IPO by end of November. Sources indicated the company may file its DRHP with SEBI as early as this week.
The EGM also approved a proposal to declassify Paytm founder and CEO Vijay Shekhar Sharma as the promoter to comply with SEBI guidelines under which promoters of listed companies should own a minimum of 20 per cent stake. Sharma, who owns 14.6 per cent, will continue to be the MD and CEO of Paytm.
Other proposals approved at the EGM include changes to the Articles of Association andEmployees Stock Options Plan. Paytm did not comment on an email query from BusinessLine .
Also read: Paytm Money offers a new “pre-open IPO applications” feature in its platform
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