One97 Communications-owned Paytm has received in-principle approval from its board to float India’s most significant IPO to-date, it mentioned in a letter to personnel and other stakeholders. The firm is also finalising the draft red herring prospectus (DRHP), which could be filed in the 1st week of next month, Bloomberg reported citing sources. Paytm expects to raise about Rs 22,000 crore from the public problem for the duration of the October-December quarter this monetary year. Paytm, in the offer you-for-sale (OFS) sent to its employees, informed that it has proposed to undertake an initial public supplying of its equity shares, topic to market place situations, regulatory, corporate and other approvals, and other relevant considerations, in accordance with applicable law, and has received in-principle approval from the board of directors. TheSpuzz Online has the copy of the letter. So far, the Rs 15,200-crore Coal India’s IPO launched in 2010 is the country’s biggest public problem.
The proposed IPO is most likely to comprise fresh problem of equity shares and offer you for sale of shares by current shareholders of the firm. “You may, in your sole discretion, participate in the Offer by offering either all or a part of the Equity Shares held by you (which are eligible to be offered in the Offer) in the offer for sale,” Paytm mentioned in a letter. The cost band for the Paytm IPO will be determined either at the time of filing the red herring prospectus (RHP) or prior to the IPO opening for the subscription. The final cost will be determined via the book-developing course of action prescribed beneath the SEBI ICDR Regulations and as shall be duly specified in the offer you documents.
Paytm, in the 79-web page letter, mentioned that equity shares that are not sold in the OFS shall be locked in for a period of one year from the date of allotment of equity shares in the IPO. One may well not sell equity shares for the duration of a one-year lock-in period. The equity shares provided in the OFS by promoting shareholders will need to be completely paid-up and are expected to have been held by the concerned promoting shareholder for a period of at least one year prior to filing the DRHP with SEBI. Therefore, June 27, 2021, shall be regarded as the relevant date to ascertain the holding period of the provided shares.
The shareholders prepared to subscribe to offer you-for-sale have to submit their relevant documents such as energy of lawyer, consent letter, promoting shareholder certificate, corporate authorisations.