SUMMARY
Shareholders and ESOP holders have up to 30 days to submit their documents in case they are looking to sell shares in the upcoming IPO
Paytm is set to go for a massive initial public offering with plans to raise INR 21,800 Cr ($3 Bn) in the IPO by November this year
JP Morgan, Goldman Sachs, Morgan Stanley and ICICI Securities have been appointed to execute the public listing
One97 Communication Pvt Ltd, the parent company of Paytm has extended the deadline for shareholders, employees and former employees to submit their documents in case they are looking to sell their share in the upcoming Paytm IPO.
Shareholders and ESOP holders have up to 30 days to submit their documents, according to reports. The extension comes shortly after shareholders raised concerns about inability to meet an earlier deadline.
“In the interest of providing additional time to our shareholders—due to the ongoing 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,” said a notice from Paytm on Thursday.
Paytm has called for an extraordinary general meeting (EGM) which is scheduled for July 12, where the company will seek shareholders’ approvals to declassify Paytm’s founder Vijay Shekhar Sharma as a promoter of the company.
The EGM meeting comes ahead of the massive $3 Bn Paytm IPO planned later this year. Paytm’s board will discuss and approve or reject the proposal later this month. One97 has proposed to purchase INR 491.93 Cr worth of optionally convertible debentures from VSS Holdings Pvt. Ltd, and it has also proposed a loan of INR 250.79 Cr to VSS Investco through inter-corporate deposits.
The Paytm IPO is expected to be the largest public market debut in India alongside others such as food aggregator Zomato and used cars marketplace CarTrade, epharmacy startup PharmEasy, beauty ecommerce brand Nykaa and insurtech startup PolicyBazaar are likely to list publicly. The Vijay Shekhar Sharma-led company is targeting a valuation of $25 Bn – $30 Bn, a big jump from its current $16 Bn valuation.
As per analysts, Paytm has shown financial discipline which is rare in the hyper-competitive payments and fintech space. Paytm is said to be on track to break even in 12-18 months and is expected to be a major force in the payments and fintech market because of its diversification.
Paytm saw its overall revenue take a hit amid the pandemic as it fell 9.9% from INR 3,540.77 in FY20 to INR 3,186.8 in FY21 on a consolidated basis. The fintech behemoth’s losses narrowed 42% to INR 1,704.01 Cr from INR 2,943.32 Cr in the same period.
One97 Communications operates Paytm Payments Bank Limited, Paytm General Insurance Limited, Paytm Life Insurance Limited, Paytm Money Limited, Paytm E-Commerce Private Limited, Paytm Entertainment Limited among other smaller entities. These combine to give Paytm a strong acquisition channel for its core business of payments and fintech services.
