Digital payments giant Paytm has sent an offer for sale (OFS) to its employees as the company is laying the groundwork for its forthcoming $3 billion worth initial public offering (IPO) towards the end of this year.
This OFS will allow Paytm’s staff to sell their shares as part of this IPO, which could potentially be the largest ever debut in the country’s stock market.
They will be able partake in the IPO by giving their consent to offer the whole or a part of their equity shares. However, the notice clarifies that shares that will not be sold in the offering will be locked-in for a year-long period.
On the other hand, the pro-rata basis will be applied provided that the current stakeholders desire to sell more aggregate of shares that the limit permitted during the IPO.
However, this decision needs to be rounded upon prior to the filing of the first offering documents to the Securities and Exchange Board of India (SEBI), Business Standard reports.
The e-commerce company’s board has given its approval to the offering plans in principle. It is currently in the process of finalizing the draft red herring prospectus that is slated to be filed in the first week of July.