Paytm shareholders approve Rs 12,000 cr primary fundraise at company EGM

Vijay Shekhar Sharma declassified as promoter; the company will raise Rs 2,000 cr before IPO

The shareholders of digital financial services firm Paytm on Monday finalised the company’s plan of raising Rs 12,000 crore by issuing fresh equity through an initial public offering (IPO), at its extraordinary general meeting (EGM). The IPO will also comprise a secondary share sale worth Rs 4,600 crore.

According to a source, shareholders approved the proposal that Vijay Shekhar Sharma, founder of Paytm, won’t be identified as “promoter” of the company. He will remain chairman, managing director and chief executive officer of the company. Sharma holds 14.61 per cent equity in the company.

“No single shareholder can have control by virtue of