Digital payments and financial services firm Paytm on Monday received shareholders’ nod for the country’s biggest public offering of Rs 16,600 crore. Shareholders have approved raising Rs 12,000 crore during the initial public offering and the sale of secondary shares will take the total amount to Rs 16,600 crore.
“The shareholders have approved all the resolutions in the Extraordinary General Meeting. The shareholders have approved the raising of capital during the IPO and fresh issue of shares up to Rs 12,000 crore. The secondary enhancement will bring the total to Rs 16,600 crore,” the source said. .
Email queries sent to Paytm did not elicit any response.
Shareholders at the EGM approved the proposal that Paytm founder Vijay Shekhar Sharma would not be recognized as a ‘promoter’ of the company, but would continue to be the company’s chairman, managing director and chief executive officer.
“As per SEBI regulations, Paytm is a professionally managed company. No shareholder can have ‘exclusive rights’. Similarly listed companies have to be in India,” the source said.
So far, Coal India had come up with the biggest IPO issue of around Rs 15,500 crore, which was listed in the last quarter of 2010.
According to the source, the valuation of the firm is likely to be between Rs 1.78 lakh crore and Rs 2.2 lakh crore. With this valuation range, Paytm is expected to be among the top 10 listed financial services in the country.
Paytm’s 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 the other shareholders of the company.
The company is expected to file documents for the IPO this week.
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