Paytm may issue fresh equity shares worth Rs 12,000 crore even before its proposed IPO in October-November. Paytm has called an extra-ordinary shareholding meeting on July 12 for this. It is understood that in this meeting, voting will also be held on the proposal to remove promoter Vijay Shekhar Sharma from the promoter.
Paytm called an extra ordinary meeting of shareholders
Paytm’s parent company One97 Communications has said in a 21-page letter to its shareholders that the company will issue fresh equity shares of Rs 12,000 crore worth Rs 1 face value. It may also include an offer for sale by the existing shareholders of the company. The company can also remove the status of ‘promoter’ of Vijay Shekhar Sharma. A copy of the letter sent to the shareholders regarding the extra-ordinary meeting is with ‘Financial Express Online’. It said that the founder of the company has asked the board of directors to remove him from the status of promoter. Vijay Shekhar Sharma currently holds 14.61 percent stake in the company.
Paytm is bringing the biggest IPO
Paytm reported last week that it has received in-principle approval to launch an IPO of Rs 21,800 crore. The company can submit an application regarding its IPO to SEBI in early July itself. Earlier, Coal India has brought an IPO of Rs 15,200 crore in the country. Paytm’s IPO will be the biggest IPO being brought in the country. The price band of the IPO will be decided before opening the Red Herring Prospectus (RHP) or subscription to the IPO. In the financial year ended March 31, 2021, the revenue of Paytm had come down to Rs 2802.41 crore. At the same time, its revenue on March 31, 2020 was Rs 3,280.84 crore.