One97 Communications, the parent company of Paytm, has called an extraordinary general meeting (EGM) on July 12 to seek approval to raise Rs 12,000 crore through fresh issue of shares during its initial public offering (IPO), ET reported.
It further plans to declassify its founder Vijay Shekhar Sharma as a promoter, the company told its shareholders in a note ahead of its upcoming extraordinary general meeting (EGM) in July.
Sources told ET that Sharma has written to the board about the change in his status as a promoter to comply with Sebi rules. According to a source, this could be a step towards Paytm classifying itself as a ‘professionally managed’ company before a local listing. However, there is no confirmation on this yet.
Sharma holds about 14.61 per cent equity in the company.
Besides deciding on the total number of equity shares that need to be reserved for allocation to eligible categories of investors, amendments to the Employees Stock Options Scheme is also on the cards.
The company will also consider the revision of the Articles of Association (AOA).
Paytm had received in-principle approval from its board to go for a $3 billion initial public offering (IPO), making it the biggest in India’s history a few weeks ago.
On June 7, in an internal email to employees, the digital payments firm asked if they would like to sell their shares. Employees will sell their shares as a part of the IPO and have a choice of selling either a part or their entire stake. Shares which they do not sell during the IPO will be subject to a one year lock in condition
Paytm is backed by investors like SoftBank Group, Ant Group and Berkshire Hathaway.
The firm’s annual general meeting is scheduled for June 30.