One97 Communication, parent of the digital payments firm Paytm, is likely to file a draft prospectus with the Securities and Exchange Board of India (Sebi) as early as next week for its much awaited initial public offering (IPO).
According to a Reuters report, the draft prospectus may be filed by July 12 for the share float which will raise $2.3 billion. The IPO is likely to be a combination of offer for sale (OFS) and sale of fresh shares.
EGM on July 12
Incidentally, One97 Communication will hold its extraordinary general meeting (EGM) on July 12 where it will take shareholders approval to raise Rs 12,000 crore through the fresh issue of shares.
The company will also move a resolution to de-classify Vijay Shekhar Sharma as promoter of the company. Sharma currently holds 9,051,624 equity shares, amounting to 14.61 per cent of the total paid-up equity share capital of the company.
The company also proposes to adopt a new set of articles of association (AoA) to conform to the requirements prescribed by stock exchanges prior to filing of the draft red herring prospectus with Sebi.
One97 Communication said in its EGM notice that the issue of fresh shares will be up to an aggregate amount of Rs 12,000 crore and it will be made to various categories of investors and eligible employees. There will be an offer for sale by certain existing shareholders.
After beginning as a mobile & DTH recharge platform, Paytm started offering services of a mobile wallet. It has now ventured into other financial services such as distribution of mutual funds and insurance products. It has also received approvals to launch stock broking, demat services and National Pension System services.
Some of the well known investors in One97 Communication include Softbank, Ant Financial, AGH Holdings, SAIF Partners, Berkshire Hathaway, T Rowe Price, and Discovery Capital. Ant Financial is its largest investor with a stake of around 40 per cent.
Zomato plan cleared
Food delivery platform Zomato has received Sebi’s approval to raise Rs 8,250 crore through an initial share sale.
The IPO comprises fresh issue of equity shares worth Rs 7,500 crore. Zomato’s first institutional investor Info Edge (India) Ltd will make an offer for sale (OFS). Info Edge initially planned to offer Rs 750 crore, but has now reduced the size by half.
Zomato filed preliminary IPO papers with Sebi in April and the firm obtained its observation on July 2, an update with the regulator showed on Monday.
Sebi’s observation is very crucial for any company to launch public issues like IPO. Proceeds from the fresh issue would be used towards funding initiatives and general corporate purposes.
The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing to grab market share.
