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Paytm to seek shareholders' approval next month to raise Rs 12,000 crore

New Delhi: Paytm will seek shareholders' nod next month to raise up to Rs 12,000 crore through issuance of fresh equity as the digital payments and financial services player prepares for an initial share sale.

The company will be holding an Extraordinary General Meeting (EGM) on July 12 wherein it will also seek approval for declassifying Vijay Shekhar as a promoter.

Shekhar is the Founder and Managing Director of Paytm.

"...the consent and approval of the shareholders of the Company be and is hereby accorded to create, issue, offer and allot a such number of Equity Shares, for cash such that the amount being raised pursuant to the fresh issue aggregates up to Rs 12,000 crores (fresh issue) with an option to the Company to retain an over-subscription to the extent of 1 per cent of the net offer size," Paytm said in the EGM notice.

Paytm will seek approval for the sale of equity shares by existing and eligible shareholders, who intimate their intention to the board, including the issue and allotment of equity shares to the stabilising agent under a greenshoe option, according to the notice.

Paytm shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), Vijay Shekhar Sharma (14.67 per cent). AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than a 10 per cent stake in the company.

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