Paytm on Monday received shareholders’ approval for its Rs 16,600-crore public offer, according to a source aware of the EGM decisions.

“The shareholders have approved the proposal to raise capital and the fresh issue of shares of up to Rs 12,000 crore during the IPO at the extraordinary general meeting. The secondary raise will bring the total to Rs 16,600 crore,” the source said.

An email query sent to Paytm did not elicit any reply.

The shareholders approved a proposal permitting Paytm founder Vijay Shekhar Sharma to shake off the promoter tag. He will, however, continue as chairman, managing director and chief executive officer of the company.

“According to Sebi rules, Paytm is a professionally managed company. No shareholder can have ‘special rights’. That is just how listed companies need to be in India,” the source said.

Coal India had come up with the biggest IPO issue of around Rs 15,500 crore, which was listed in the last quarter of 2010. According to the source, the valuation of Paytm is likely to be in the range of Rs 1.78 lakh crore to Rs 2.2 lakh crore.