Paytm's IPO plan comes at a time when several first-generation homegrown startups in India are preparing to go public on domestic bourses, led by food delivery firm Zomato which made a stellar stock market debut. Paytm, which has filed for a Rs 16,600 crore ($2.2 billion) IPO that will likely be the largest ever in India, also expects to break even in 18 months. The digital payments firm expects to launch its IPO at around the end of October, pending regulatory approvals. Douglas Lehman Feagin, senior vice president at Ant Group has joined the board as an additional director, replacing Chinese national Eric Xiandong Jing, the chief executive of fintech conglomerate Ant Group. Paytm has reportedly said that Ant Group would shed its stake by 5 per cent as part of the IPO to comply with Sebi’s PMC norms. IPO-bound Paytm has also made several changes to its board of directors recently. If the market regulator views the two as a combined entity, it may impose some caveats and give a definite time frame to Ant Group and Alibaba to offload their stake to 25 per cent from the current 37 per cent, according to the report. So in this case, Alibaba and Ant group, both are being looked at for compliance issues,” a regulatory source told the publication.Īlso Read - Paytm eyes Rs 16,600-crore IPO by October-end, hopes to break even in 18 months But each issuance has different dynamics. “Sebi (Issue of Capital and Disclosure Requirements) rules provide for companies without promoter, also called professionally managed company, where they do not need to designate a promoter. Cummulatively, they both hold 37 per cent stake in Paytm.Īlso Read - Paytm to add Ant’s Feagin to board, ramp up stock awardsĪccording to the report, to become a professionally managed company, no single entity can own more than 25 per cent in Paytm. ![]() Ant is an affiliate of the Alibaba Group and they are registered as separate companies. New Delhi: Digital payments and financial firm Paytm has received over 5.45 lakh shares from around 20 more employees for monetisation in its upcoming IPO. ![]() With around 30 per cent stake in Paytm, Ant Group is its single largest shareholder. Paytm has received over 5.45 lakh shares from around 20 more employees for monetisation in its upcoming IPO. The regulator is reportedly looking at whether the two investors must be treated as separate companies or a combined entity, which is a part of its due diligence process, according to a report by the Business Standard. The move comes ahead of Paytm’s Rs 16,000-crore initial public listing (IPO). IPO-bound Paytm is expanding the employee stock ownership plan (ESOP) pool with 3.7 crore shares through an extraordinary general meeting on September 2, taking the total pool to 6.10 crore. ![]() Market regulator Securities and Exchange Board of India (Sebi) is examining if Paytm shareholders Ant Group and Alibaba are in compliance with listing regulations. IPO-bound payments company Paytm is looking to turn its payment aggregator business into a new subsidiary called Paytm Payments Services Limited as the deadline to adhere with the Reserve Bank of India’s payment aggregator rules looms large.
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