Paytm President Resigns Days Before IPO; Why Top Paytm Executives Are Quitting?
Paytm might have just witnessed another blow in its prospectus, when recently, one of the topmost leaders of the company, its president, Amit Nayyar tendered his resignation. As the company is preparing for the IPO, this does not bode well for the future of the company.
Series of separations from the organization
Nayyar, who is IIM Bangalore Alumni and former Goldman Sachs executive, was brought on board for the building firm’s financial services arm. He has been a key figure while building its lending and insurance verticals.
It is not only, Nayyar who has left the company in recent months. Last month only its Chief Human Resource Officer, Rohit Thakur has also completed his notice period. He served at the company only for just a month more than 1.5 years. Along with Nayyar and Thakur, three other vice-presidents have also departed from the company.
When Paytm was approached by ET Now Digital, the company responded with the statement, “As a company, we do not comment on personnel changes. We have built an incredible management team with some of the most reputed names in the industry, who are focused on driving growth at Paytm.”
Paytm is on the cusp of IPO
Paytm’s parent company, One97 Communications, is likely to file DRHP (i.e. draft red herring prospectus) with SEBI (Securities and Exchange Board of India, the stock market regulating authority). The filing is supposed to happen just after the Extraordinary General Meeting (EGM), scheduled on July 12th.
The company is expecting to raise money through the sale of new Paytm Stock as well as the secondary offering of shares. The company expects a valuation of $24 Billion to $25 Billion. Paytm is proposing the IPO of $ 2.3 Billion. If materialized it will be India’s third-largest IPO. The first two are Coal India and Reliance Power.
The fintech company which primarily deals with digital payments is backed by China’s Alibaba and Japan’s Softbank. It is valued at $16 Billion.
Ant group and Alibaba own nearly 38%, Softbank holds 18.37% while Elevation Capital holds a 17.65% stake in the company.
How this whole issue evolves would be an interesting thing to watch.