Business News – Paytm gets shareholders’ nod to raise Rs 12,000 crore, founder Vijay Shekhar Sharma to be declassified as a promoter
One97 Communications, the parent company of fintech major Paytm on July 12 received approval from its shareholders at an extraordinary general meeting to raise Rs 12,000 crore through a fresh issue of shares, paving way for one of India’s largest initial public offerings (IPO) in recent times.
This is in line with Paytm’s plan to become a PMC or a professionally managed company, which requires approval from the Securities and Exchange Board of India (SEBI). Under this norm, no single entity can own 25 percent or above in the company.
The issue will also have a secondary, where existing shareholders will sell their shares. This will bring the total amount to Rs 16,600 crore.
At present, Paytm has about 1,000 shareholders, broadly held by various institutional investors, employees, former employees, and others.
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