New Delhi: In a significant move ahead of Paytm’s Initial Public Offering (IPO) launch, all the Chinese nationals on the board of digital payment firms have been replaced by Indian and US nationals.
The revamp of Paytm board is seen as a signal to woo maximum domestic investors as reports of Chinese investment in the home-grown company was enough to drive away potential shareholders.
Though One97 Communications (Paytm’s parent company) has 30% shareholding of Ant Group, headed by a Chinese national but after the IPO, it is likely to fall below 25%.
No Chinese national on Paytm board now
According to filing with the registrar of companies, Alipay representative Jing Xiandong, Ant Financial’s Guoming Cheng, and Alibaba representatives Michael Yuen Jen Yao (US citizen) and Ting Hong Kenny Ho have ceased to be directors of the company. US citizen Douglas Feagin has joined the Paytm board on behalf of Ant Group.
Paytm now has no Chinese national on its board, reports said.
Shareholders & their stake in Paytm
At present, Alibaba Group Holding Ltd and ANT Financial hold almost 37% stake in Paytm, Softbank and Elevation Capital (formerly SAIF Partners) hold almost 20% stake each. Founder Vijay Shekhar Sharma’s stake stands at 14.67% in the company. AGH Holding, T Rowe Price, Discovery Capital and Berkshire Hathaway hold less than 10 percent stake each in the company.
Paytm to seek approval for raising Rs 16,600 crore
Paytm is likely to seek shareholders” approval on July 12, to raise up to Rs 16,600 crore through its initial share sale.
The company will hold a general meeting on July 12, in which decision will be taken to raise up to Rs 12,000 crore through issuance of fresh equity. Another Rs 4,600 crore is likely to be raised from sale of equity shares by existing shareholders.