The shareholders of Paytm have given a go-ahead to the company’s plan of raising Rs 120 billion by issuing fresh equity through an initial public offering (IPO), at its extraordinary general meeting (EGM). The IPO will also comprise a secondary share sale worth Rs 46 billion.

Before the IPO, Paytm will reportedly raise $268 million in a pre-IPO round. Furthermore, the firm plans to issue new shares worth Rs 83 billion. Existing investors SoftBank and Ant Group will have the option to sell shares worth another Rs 83 billion.

Further, the shareholders approved the proposal that Vijay Shekhar Sharma, founder of Paytm, would not be identified as “promoter” of the company. He will remain chairman, managing director and chief executive officer of the company. Sharma holds 14.61 per cent equity in the company.

If successful, Paytm’s IPO could be the biggest by an Indian company. Paytm is targeting a valuation of $25 billion- $30 billion, 1.5-1.8 times the current valuation of $16 billion. The IPO is expected to be floated in November 2021.