The Noida-Based company is expected to release its DPHP (Draft Red Herring Prospectus) in the coming weeks and anticipate coming with an IPO by the end of 2021.
Shareholders of Paytm’s holding company on Monday approved a resolution in its extraordinary general meeting, according to which, the company will come with an IPO of Rs. 16,600 Cr. in which Rs. 12,000 Cr. will have a fresh issue and the remaining Rs. 4,600 Cr. will be through secondary raise, and this will take the Paytm IPO worth Rs 16,600 crore.
The start-up has hired several banks, including JPMorgan Chase & Co. and Goldman Sachs Group Inc., for the IPO.
Ace fin-tech company Paytm is going to raise Rs. 2,000 Cr. ($268 Mn.) by issuing shares to Institutional Investors before it’s 16,600 Cr. IPO, as per the reports.
Shareholders also approved the proposal that founder and CEO, Vijay Shekhar Sharma, would not be identified as the “promoter” of the company. This is to comply with Securities and Exchange Board of India (SEBI) rules requiring promoters of listed firms to have at least 20% of post-issue capital.
V.S Sharma holds 9,051,624 equity shares of One97 Communication Ltd (parent company of Paytm), which is amounting to 14.61% of its total paid-up equity share capital. V.S Sharma will continue to be the Chairman, Chief Executive Officer (CEO), and M.D (Managing Director), of the company.
The company is looking for a valuation ranging between $24-$30 Bn, as per sources. Currently, the company has a value of $16 Bn. and is backed by China’s Alibaba and Japan’s SoftBank.
Ant Group and Alibaba hold approximately 38% of One97 Communications, SoftBank owns 18.73% and Elevation Capitals (formally, SAIF Partners) possess 17.65% of stakes.
The IPO-bound company has made various changes in its board of directors. According to regulatory filings, Vikas Agnihotri of Softbank Vision Fund has joined Paytm’s board as an alternate director. Michael Yuen Jen of Alibaba and Todd Anthony Combs of Berkshire Hathaway have left the board.
Douglas Lehman Feagin, senior vice president at Ant group, has been appointed as Additional Director of the Board. Ashit Lilani, the managing partner of Saama Capital, an early backer of Paytm, has also joined the company board as an independent director.