Paytm said it received approval from its shareholders to push ahead with its plans of a Rs 16,600 crore initial public offering (IPO), various media reports said on Monday, citing sources aware of the discussions.
Shareholders have also approved a resolution for the company to raise Rs 12,000 crore in fresh equity, another media report stated.
The Gurugram-based fintech unicorn is expected to release its draft red herring prospectus (DRHP) later this week, although a Reuters report stated it would file it on July 12.
Shareholders also approved the removal of the ‘promoter’ tag for Vijay Shekhar Sharma to comply with rules set out by the Securities and Exchange Board of India (SEBI) – which Paytm had proposed in its letter to the shareholders.
Paytm’s much-anticipated IPO is expected to take place in November. It will be the second startup this year to go to public markets after Zomato.
Zomato’s subscription will open on July 14 and close on July 16. Its shares are already trading at a premium in the unregulated markets.
Last week, YS reported that Noida-based Paytm’s president and head of its financial services division Amit Nayyar had resigned. The news came hot on the heels of the startup’s chief human resource officer (CHRO) Rohit Thakur who also exited the firm in June.
Paytm has been actively rejigging its Board in the run-up to its IPO. It has replaced all Chinese nationals on its board with US and Indian citizens, its regulatory filings showed.
Alipay’s Jing Xiandong, Ant Financial’s Guoming Cheng, and Alibaba’s Michael Yuen Jen Yao and Ting Hong Kenny Ho have all ceased to hold directorship of Paytm.
On behalf of Ant Group, Douglas Feagin has joined.
Alibaba’s Ant Group owns a 29.7 percent stake in the startup, while Softbank Vision Fund holds 19.63 percent. Elevation Capital (earlier SAIF Partners) and Paytm founder Vijay Shekhar Sharma hold 18.6 percent and 14.7 percent, respectively.
