Paytm Can Raise Rs 16,600 Crore Through IPO

Paytm can raise Rs 16,600 crore through IPO, approval possible next week.

Digital payments company Paytm may seek the approval of its shareholders to raise Rs 16,600 crore through an initial share sale (IPO).

With this, the capital valuation of the company can be up to Rs 1.78 lakh crore. The extraordinary general meeting of Paytm is to be held on July 12.

In this meeting, the company can take approval to raise up to Rs 12,000 crore by issuing fresh equity.

According to the source, the remaining amount of Rs 4,600 crore will be raised from the sale of shares of existing and eligible shareholders of the company.

The company may seek shareholders’ approval to raise close to Rs 16,600 crore through IPO.

The existing shareholders, former and current employees of the company have also opted to sell their shares in the process.

Meanwhile, all Chinese citizens have been removed from the board of directors of Paytm. His place on the board has been taken by US citizens and Indians.

However, this has not changed the existing shareholding pattern of the company.

The company said in a regulatory notice that Alipay’s representative Jing Jiandong, Ant Financial’s Guoming Cheng, and Alibaba’s representatives Michael Yuen Zhen Yao (US Citizen) and Ting Hong Kenny Ho are no longer directors of the company.

According to the source, there is no Chinese national on the board of directors of Paytm. US citizen Douglas Fagin has joined the Paytm board on behalf of Ant Group.

Berkshire Hathaway representative Todd Anthony Combs, Sama Capital’s Ashit Ranjit Leilani, and SoftBank representative Vikas Agnihotri also joined the board.

Top 10 Fintech Companies Included.

The company’s valuation could reach in the range of Rs 1.78 lakh crore to Rs 2.2 lakh crore from this, the source said. With this valuation, Paytm will be among the top 10 financial services companies.

Who is the partner.

The shareholders of Paytm include Alibaba’s Ant Group (29.71 percent), SoftBank Vision Fund (19.63 percent), Saif Partners (18.56 percent), and Vijay Shekhar Sharma (14.67 percent).

In addition, AGH Holding, T. Rowe Price, Discovery Capital, and Berkshire Hathaway each hold less than 10 percent of the company’s shares.

The company may submit documents to SEBI next week for initial public offering (IPO).