Paytm aims to raise $1.6 billion with fresh shares in IPO

One97 Communications, the parent company of Paytm, intends to issue fresh shares worth Rs 12,000 crore, or $1.6 billion, in its upcoming initial public offering (IPO). It also plans to declassify its founder Vijay Shekhar Sharma as promoter, the company told its shareholders in a note ahead of its upcoming extraordinary general meeting (EGM) in July. According to Paytm’s note, Sharma wrote to the board regarding the change in his ‘promoter’ tag. ET has reviewed a copy of the note, which was sent to shareholders on Friday.

While earlier reports have said Paytm aims to raise around $3 billion through the IPO, this is the first time the company has disclosed — albeit partially — how much it intends to raise. The company did not mention share sales by existing shareholders in Friday’s note.