Paytm is asking its employees if they want to sell stock in the digital payments company’s planned initial public offering, a step closer to what could be the country’s largest stock market debut ever. According to documents acquired by Bloomberg News, the business, formally known as One97 Communications Ltd., delivered the “offer for sale” to its employees on Monday as it prepared to file for an IPO. According to a source familiar with the matter, Paytm’s board has accepted the offering plans in principle and is preparing the draught red herring prospectus, which may be issued as early as the first week of July.
One97 Communications “is proposing to conduct an initial public offering of its equity shares (“Equity Shares”), subject to market conditions, regulatory, corporate and other approvals, and other relevant considerations, in accordance with applicable law,” according to Amit Khera, the company’s secretary.
One97, which was recently valued at $16 billion by unicorn tracker CB Insights, is part of a new wave of promising Indian entrepreneurs. During one historic week in April, six firms achieved unicorn status in the digital industry, with valuations of $1 billion or more.
To comply with Indian legal requirements, Paytm’s public market debut will contain a combination of new and existing shares.