Digital payments and financial services firm Paytm has extended the deadline for shareholders, employees and former employees to submit their documents by June 30, if they wish to sell their shares in the planned initial public offering of the company.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

One 97 Communications, which operates services under the Paytm brand name, is planning an initial public offering of its equity shares which is contemplated to include a fresh issue of equity shares by the company and an offer-for-sale of equity shares by the existing shareholders of the company.

 

See Zee Business Live TV Streaming Below:

In a notice to its shareholders Paytm said "in the interest of providing additional time to our shareholders, due to the on-going situation, to process all the documentation shared and dispatch them to us, we are extending the last date to submit documents for participation in the Offer from June 22, 2021 to June 30, 2021."

The equity holders had expressed concern about inability to meet the timeline of June 22, for submission of requisite documents, as per 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 10 per cent stake in the company.

Paytm has plans to raise up to Rs 12,000 crore by issuing fresh equity for which it will seek shareholder''s nod in an Extraordinary General Meeting (EGM) on July 12.

The company will also seek approval to declassify Paytm founder and managing director Vijay Shekhar as a promoter at the EGM.

Paytm will seek shareholders'' approval to authorise Sharma, Paytm president and group chief financial officer Madhur Deora, chief financial officer Vikas Garg and company secretary Amit Khera to be authorised to execute and deliver any and all other documents, papers or instruments, issue and provide certificates and carry out all activities required for the proposed offer.

According to a Bernstein report published on May 27, Paytm revenue may double by the financial year 2023 to over Rs 7,000 crore with the non-payments segment contributing around 33 per cent to the overall kitty.

“With increased financial discipline and targeted strategic investments, Paytm is on track to break even in 12-18 months,” the report said.