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One97 Communications, which is the parent company of Paytm, has called for an extraordinary general meeting on July 12 ahead of its planned initial public offering.
The company plans to raise ₹12,000 crore through a fresh issue of shares, which will be taken up at the EGM.
Proposal to declassify CEO
A proposal to declassify Paytm founder and CEO Vijay Shekhar Sharma as the promoter will also be taken up at the EGM. Sources said this is being done to meet SEBI norms.
The meeting is also expected to discuss the issue of employee stock options as part of the IPO.
The Articles of Association of the company are also likely to be amended.
A Paytm spokesperson declined to comment on the development.
Fintech major Paytm is planning to go public by the end of the year around November or December through an IPO. It is hoping to file its draft red herring prospectus (DRHP) by July and has already lined up merchant bankers for the issue.
In-principle approval
The company, which is backed by SoftBank Group, Berkshire Hathaway Inc and Ant Financial, has already received an in-principle approval from its board of directors for the IPO.
According to the Hurun India Unicorn Index 2020, Noida-based Paytm was the highest valued Indian unicorn with a valuation of $16 billion
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