Paytm Extends Deadline for Shareholders to Submit Documents for Sale of Shares to June 30, Retail News, ET Retail
One 97 Communications, which operates services under the Paytm brand, is considering an initial public offering of its equity shares which is expected to include a new issuance of equity shares by the company and an offer to sell equity shares by the company existing shareholders of the company.
In a notice to its shareholders, Paytm said “in the interest of giving our shareholders more time, due to the current situation, to process all shared documentation and send it to us, we are extending the deadline to submit documents for participation in the Offer from June 22, 2021 to June 30, 2021. “
Shareholders had expressed concern over the inability to meet the June 22 deadline for submitting the required documents, as per the notice.
Paytm shareholders include Alibaba’s Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%). AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10 percent of the company’s capital.
Paytm intends to increase to Rs 12,000 crore by issuing new shares for which it will seek shareholder approval at an extraordinary general meeting (EGM) on July 12.
The company will also seek approval to declassify Paytm founder and CEO Vijay Shekhar as a promoter at EGM.
Paytm will seek shareholder approval to authorize Sharma, Paytm Chairman and Group CFO Madhur Deora, CFO Vikas Garg and Company Secretary Amit Khera to be authorized to sign and deliver any other document, paper or instrument. , to issue and provide certificates and perform all the activities required for the proposed offer.
According to a Bernstein report released on May 27, Paytm’s revenue could double by fiscal 2023 to over Rs 7,000 crore, with the non-payment segment contributing around 33% of the overall prize pool.
“With increased financial discipline and targeted strategic investments, Paytm is on track to break even in 12 to 18 months,” the report said.