One97 Communications Ltd, which runs the digital payment firm Paytm, will hold an extraordinary general meeting on July 12 where it will take shareholders’ permission to raise Rs 12,000 crore by issuing fresh shares.
The company will also move a resolution to de-classify Vijay Shekhar Sharma as promoter of the company. It will also propose a new set of articles of association (AoA) to conform to the requirements prescribed by bourses prior to filing of the draft red herring prospectus with the Securities and Exchange Board of India.
The Paytm parent is set to come out with its initial public offering (IPO), which comprises issue of fresh shares and an offer for sale. In its EGM notice, One97 Communications said the issue of fresh shares will be up to an aggregate amount of Rs 12,000 crore and made to various categories of investors and eligible employees. There will also be an offer for sale by certain existing shareholders.
“The company plans to undertake the offer and list its shares at an opportune time in consultation with the book running lead managers and other advisers,’’ the notice said. Its board had approved the IPO at its meeting on June 14.
On Sharma, One97 Communication said he has been identified as the promoter in its annual returns filed with the Registrar of Companies (RoC) in previous years. The board had received a letter from Sharma seeking declassification of his promoter status.
The letter said that One97 Communications has seen rapid growth in the last two decades, which may be attributed to the investments made by reputed institutional investors. This has helped the company to diversify its operations and activities.
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. However, he can exercise any control over the affairs or the decision-making process of the company only to the extent of his shareholding.
The rest of the firm is broadly held by various institutional investors, employees, ex-employees and other third parties.
