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Bengaluru: One97 Communications Ltd., which operates the Paytm brand has reshuffled its board of directors, as the company targets to float its initial public offering (IPO), worth $2.2 billion-$3 billion, later this year.

Douglas Lehman Feagin, senior vice president, at Ant Group has joined Paytm’s board replacing Ant Group chairman and chief executive officer, Jing Xiandong (Eric). Xiandong has tendered his resignation from the board of One97 Communications, according to company filings with the registrar of companies (ROC).

Industry veteran Ash Lilani, managing partner at Saama Capital and who was earlier the head of global markets at Silicon Valley Bank (SVB) has been appointed as an independent director to the company.

In addition, Michael Yuen Jen Yao from Alibaba Group Holding Ltd. and Todd Anthony Combs, investment manager at Berkshire Hathaway have retired by rotation from One97’s board on 30 June, as per the ROC filings.

Both Yao and Combs were appointed to One97’s board of directors in 2019.

At present, Alibaba Group Holding Ltd and its payments arm ANT Financial hold almost 37% stake in the payments major, while Softbank through its Softbank Vision Fund and Elevation Capital (formerly SAIF Partners) hold almost 20% stake each in the entity, respectively. Founder Vijay Shekhar Sharma’s stake stands at 14.67% in the company.

Along with this, Paytm has also allowed its employees to exercise their employee stock ownership plan (ESOPs).

“The Board approved allotment of 5,44,870 equity shares (post-split of INR 1 face value) to the employees (including some ex-employees) upon exercise of Employee Stock Options (ESOPs) by them," read the filings of the company on July 6.

The company has about 1,000 shareholders, broadly held by various institutional investors, employees, former employees and others.

Last month, Paytm sought shareholders’ approval to sell new shares worth 12,000 crore in its IPO, with the proposal expected to be put to vote at an extraordinary general meeting on 12 July, according to a notice sent to shareholders.

The notice also proposed removing founder Vijay Shekhar Sharma’s ‘promoter’ status, complying with Securities and Exchange Board of India (Sebi) rules requiring promoters of listed firms to have at least 20% of post-issue capital.

The company is also expected to file its draft red herring prospectus (DRHP) as early as July 12 and will seek to raise $2.3 billion at a valuation of $24 billion - $25 billion, Reuters reported on Monday.

On 14 June, Paytm’s board cleared the new share sale plans, and named JPMorgan Chase and Co., Goldman Sachs, Morgan Stanley and ICICI Securities Ltd as bankers or lead book running managers to the IPO.

The company will look to raise $1billion-$1.5 billion as part of primary share sale, during the initial public offering (IPO), Mint first reported on May 31.

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