Paytm To Raise ₹12k Cr Via New Shares In IPO

Founder Sharma To Lose Promoter Status

- Mayur Shetty

Mumbai: One97 Communications, the parent company of Paytm, has said that it will sell new shares worth Rs 12,000 crore under its proposed initial public offering (IPO). The issue will also have a secondary component where existing shareholders will decide on the number of shares to be tendered. Announcing an extraordinary general meeting (EGM) on July 12 for approving the IPO, the company has sought shareholders’ approval on a resolution that seeks to declassify founder Vijay Shekhar Sharma as a promoter as it is a professionally managed company.

The EGM notice has been sent to employees of the organisation who are also shareholders. This is the first time that Paytm has confirmed the size of its primary fundraise. The company had earlier written to employees seeking their interest to participate by offering their shares as part of the ‘offer for sale’ (OFS) component in the IPO.