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Ahead of IPO Paytm rejigs its board – Moneycontrol.com

The company has rejigged its board and has also appointed Ash Lilani, managing partner of Saama Capital as an independent director.

Vijay Shekhar Sharma, CEO and founder of Paytm, has announced that he will not take two months’ salary.

Ahead of its initial public offering (IPO) Paytm has witnessed the exit of Jing Xiandong of Ant Group from the company’s board who is being replaced by Douglas Lehman Feagin, as per filings with the registrar of companies (ROC) Moneycontrol accessed.

Feagin is the senior vice president of Ant Group and is based out of the US.

The company has rejigged its board and has also appointed Ash Lilani, managing partner of Saama Capital as an independent director.

Michael Yuen Jen Yao of Alibaba Group Holding and Todd Anthony Combs of Berkshire Hathaway have retired by rotation following the last Annual General Meeting held on June 30.

One97 Communications, the parent of digital payments giant Paytm is likely to file its draft red herring prospectus (DRHP) with market regulator Sebi shortly after the firm’s EGM scheduled for July 12, Moneycontrol reported on July 6.

The combined size of the IPO, including both fresh issue and the offer for sale by selling shareholders, is likely to be in the range of $2.2 billion to $2.3 billion and the size could be increased later if required.

Last month Paytm had called an extraordinary general meeting (EGM) on July 12 to seek shareholders nod to raise Rs 12,000 crore through a fresh issue of shares.

The stakeholders will also decide if founder and chief executive Vijay Shekhar Sharma can be declassified as the promoter as he does not own the requisite 20 per cent stake as per Sebi norms to be a promoter.

Paytm’s key shareholders include Alibaba’s Ant Group which holds 29.71 percent stake, while Softbank Vision Fund and Saif Partners hold 19.63 percent and 18.56 percent, respectively.

Besides restructuring the board, the company has also approved the allotment of 5,44,870 equity shares to former and existing employees upon exercise of Employee Stock Options (ESOPs) by them.

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Priyanka Sahay