One97 Communications, the parent company of Paytm has decided to raise Rs 12,000 crore ($1.6 billion) by issuing fresh equity in its extraordinary general meeting (EGM) on July 12, according to reports. Paytm had received in-principle approval from its board to go for a $3 billion initial public offering (IPO), biggest in India.
“The company wants to sell Rs 12,000 crore ($1.61 billion) in new shares plus a potential 1% for over-allotment,” according to Bloomberg.
The company will also decide if founder and chief executive Vijay Shekhar Sharma can be declassified as the promoter, according reports. “Resolved that the shareholders of the Company hereby take on record that Mr. Vijay Shekhar Sharma shall henceforth not be identified as a ‘promoter’ of the Company for any purpose, regulatory, statutory, commercial or otherwise, under any applicable law..,” said the shareholding, according to reports.
The company also stated that the IPO will include a fresh issue of equity shares and an offer for sale from certain existing shareholders, according to Business Standard.
Paytm’s shareholders include Alibaba’s Ant Group ( 29.71 per cent shares), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent, and Vijay Shekhar Sharma (14.67 per cent).
Earlier this month, Paytm asked its workers to formally declare if they wanted to sell stock as part of the public offering, according to reports. The declarations would be required before the company finalizes its prospectus, expected to be submitted to the regulator in early July. The startup has hired four banks including JPMorgan Chase & Co. and Goldman Sachs Group Inc. for the IPO, Bloomeberg said.
Paytm reported revenue of ₹3186.60 crore for FY21. This revenue growth is led by the fact that Paytm has been building a multi-stack payment platform, with several funnels of growth. Paytm’s losses have dropped by 42%, from ₹2,942.36 crore in FY20 to ₹1,701 crore in FY21. The annual revenue has also shown has crossed Rs 2,100 crore in the previous financial year. The company has built several payment instruments including Paytm Wallet, Paytm UPI, Paytm Payments Bank account, Paytm Postpaid, Paytm FASTag, Paytm Food Wallet, Paytm Wealth Management accounts, credit and debit cards among others.
(With inputs from agencies)
Read all the Latest News, Breaking News and Coronavirus News here.
Comments
0 comment