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Roehl Niño Bautista · · 1 min readPaytm $2.2b IPO hits snag as firm’s ex-director asks regulator to stall listing
“Paytm’s US$2.2 billion IPO is facing an unusual hurdle – a 71-year-old former director has urged India’s markets regulator to stall the offering, alleging he is a co-founder who invested two decades ago but never got shares,” reported Reuters.
Details:
- The SoftBank and Ant Group-backed Indian mobile payment company claims that the actions of Ashok Kumar Saxena (the ex-director) are “mischievous attempts to harass the firm,” but the latter argues that an individual has no position to harass a high-profile company.
- Saxena told the Securities and Exchange Board of India that if his claim is verified, investors might end up losing money.
Dive deeper:
- A signed document showed that Saxena was supposed to get 55% equity in parent company One97 Communications, with Paytm CEO Vijay Shekhar Sharma getting the rest. Saxena alleges that he had invested US$27,500 about two decade ago but never got the shares.
- Paytm filed a draft red herring prospectus in July looking to raise US$2.2 billion through its listing on the Indian bourses.
Editing by Collin Furtado and Jaclyn Tiu
(And yes, we’re serious about ethics and transparency. More information here.)
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