Paytm founder could see his stake go up by 2-4% in parent firm ahead of IPO
Vijay Shekhar Sharma, founder Paytm, could well see his stake go up in parent company One97 Communications. Sharma who holds around 14.6 per cent in the parent company could see his stake increase by another 2 to 4 per cent, said sources in the know.
“Vijay had in the past given 4 per cent of his equity before forming Paytm’ ESOP pool was created. So technically, till sometime back, people got his shares as their ESOPs,” said a source aware of the details on condition of anonymity.
In August this year, the company had doubled its ESOPs pool from 24,094,280 to 61,094,280, this was approved by shareholders earlier this month. “Vijay has never taken any ESOPs in the past. The existing shareholders see this as a reward for the incredible work he has done in creating a payments and financial services leader in Paytm,” said another source close to the development.
These changes come as the company has filed the draft red herring prospectus (DRHP) for an IPO that intends to raise over $2 billion.
Sharma is understood to be offloading some of his stake in the company through offer for share (OFS). With this, however, he will manage to hold a substantial stake in the company.Some of the other investors like Alibaba Group, Ant Group, Softbank and other are also offloading some part of their holdings in the company.
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