Paytm founder Vijay Shekhar Sharma will no longer be a promoter, shareholders approve ₹12000 crore IPO

New Delhi. Shareholders of One97 Communications, the parent company of digital payments company Paytm, have approved the raising of Rs 12,000 crore by issuing a fresh issue. There will also be an Offer for Sale (OFS) along with a fresh issue in Paytm’s IPO. Many investors of the company will also sell their stake. With this, the total amount will be Rs 16,600 crore. It is being said that it is in the process of becoming the country’s largest IPO.

Vijay Shekhar Sharma to continue as CMD and CEO
The shareholders of One-97 Communications have also approved that Paytm founder and CEO Vijay Shekhar Sharma will cease to be the promoter of the company. He does not hold more than 20 per cent stake in the company, which is necessary to be a promoter of a company. Vijay Shekhar Sharma currently holds 14.61 percent stake in Paytm. Vijay Shekhar Sharma will continue to be the Chairman, Managing Director and CEO (CMD & CEO) of the company. This change in the company is a part of the already decided plan.

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Alibaba-Ant Group holds 38% stake
For a company to be a professionally managed company, it is necessary that it has the approval of the capital market regulator SEBI. Under this rule, no one company or person should have more than 25 percent stake in the company. Important investors in Paytm also include China’s Alibaba and Ant Group, which together hold 38 percent stake. Soft Bank of Japan holds 18.73 percent stake. Apart from this, Elevation Capital holds 17.65 percent stake in Paytm.

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