Unique: Vijay Shekhar Sharma will get new inventory choices forward of Paytm IPO


Bangalore | Mumbai: Individuals near the matter mentioned Paytm founder Vijay Shekhar Sharma is getting a big quantity of recent inventory choices in One97 Communications, a transfer that can enhance his stake within the dad or mum firm by 2-3%.

This comes earlier than the $2.2 billion Paytm IPO, which is taken into account to be the most important invoice in India in at the very least a decade.

The digital funds agency has not too long ago doubled its ESOP pool from 24,094,280 fairness choices to round 61,094,280 fairness choices of face worth of Re 1 every. Sources mentioned a “good portion” of those new inventory choices has been allotted to Sharma. “He sought shareholder approval in August for ESOP pool enlargement, which was authorized earlier this month. About half of this has been allotted to Sharma.

Sharma, who holds round 15% stake in One97 Communications, is planning to promote part of his stake within the upcoming Paytm IPO by a proposal on the market (OFS).

ETtech

The brand new inventory choices granted to him will enhance his holding even after he sells a portion of his shareholding. These are performance-linked and are primarily based on attaining sure milestones on Paytm, mentioned sources. One other individual near the corporate mentioned, “Additionally it is the administration’s manner of rewarding Sharma for rising Paytm as a number one funds agency thus far (IPO).” In addition to Sharma, buyers reminiscent of Ant Group, Alibaba Group, SoftBank and Elevation Capital are additionally anticipated to promote a part of their stake within the Paytm IPO.

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When contacted, a Paytm spokesperson didn’t instantly reply to a question despatched by ET.

Pre-IPO Strikes

To make sure, the allocation of recent inventory choices to Sharma shouldn’t be an anomaly as many top-tier founders have obtained such grants previous to the IPO to make the most of the itemizing. On September 10, ET reported that the founders of Tata-owned BigBasket had been additionally given new administration inventory choices to “retain, entice and encourage” expertise on the on-line grocer.

Over the previous few months, Paytm has additionally seen its present and former executives changing their inventory choices into shares, within the hope that they are going to be redeemed throughout the IPO. In August, the corporate additionally granted new ESOPs to 166 former and present workers, which had been later transformed into firm shares, in accordance with regulatory filings accessed by ET.

Moreover, Paytm has formalized three appointments to the board of administrators:

  • Neeraj Arora, former chief enterprise officer of WhatsApp as non-executive impartial director
  • Ashit Ranjit Leilani, Managing Accomplice of Sama Capital has been appointed as Non-Govt Impartial Director
  • Douglas Feagin as Senior Vice President, Director of Investor Ant Group

Paytm had in July filed a draft purple herring prospectus with the markets regulator, the Securities and Trade Board of India (SEBI), to lift Rs 16,600 crore ($2.2 billion) by a public problem.

In keeping with the draft papers, the providing would come with a contemporary problem of Rs 8,300 crore and a secondary problem or supply on the market of the identical dimension. The corporate has stored an open window of as much as Rs 2,000 crore for pre-IPO funding. If this occurs, the dimensions of the brand new problem can be adjusted accordingly.

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