![]() The inability of Ant Financial to participate in such offerings could lead to dilution of its stake in relation to other investors that don’t face any such obstacle in claiming their entitlements. ![]() “Press Note 3 restricts investments by an investor from the bordering countries and unless a specific exemption is provided, this restriction would also be applicable to further investments by an existing shareholder pursuant to a rights issue,” the publication quoted Moin Ladha, partner, Khaitan & Co as saying. Digital payments giant Paytm, one of India’s most valuable startups, plans to raise up to 2.2 billion in an initial public offering, it said in draft papers submitted to the country’s market. Subsequently, government hardened its stand after tensions escalated on the border with China. At about this time, Bank of China’s stake in Housing Finance and Development Corp (HDFC) had crossed 1%. Last year the government introduced these restrictions through Press Note 3 amid concerns about Chinese entities taking over Indian companies during volatility sparked by the outbreak of Covid-19 pandemic. Ant Group holds 30.33% of Paytm and is the largest shareholder, data from the FY21 annual report showed. Paytm is conducting due diligence and is expected to file initial public offering (IPO) documents in the next few months.Īnt Group owns 16.65% of Zomato through two entities - Alipay Singapore and Antfin Singapore Holdings - and is the second-largest shareholder after Info Edge, offer documents showed. Paytm shares rise today after suffering 40 loss post-IPO listing 1 min read, 11:14 AM IST Asit Manohar Paytm share price has immediate support at 1200 to 1300 levels. Zomato has already filed an offer document with the Securities and Exchange Board of India (Sebi). Tax consultants pointed out that the majority of the Chinese entities that applied for permission for FDI in India over the past year are yet to receive government approval. The restrictions will also apply to other corporate actions such as mergers and demergers, the financial daily mentioned citing tax experts. But rights and bonus offers by listed companies are frequent - to reward shareholders and to raise capital. This facility allows you to make payments later. To be sure, a few unlisted companies with domestic promoters have gone in for rights issuances. Paytm share price: Recently Bank of America Securities upgraded the stock to a buy and raised its target price from 780 to 885. What Is Paytm Postpaid Paytm Postpaid services are providing digital credit services to users, where it allows you to make transactions digitally. As per legal experts, unlisted companies with foreign shareholders typically opt for preferential allotments or share splits since tax and other rules are easier to comply with, rather than bonus or rights offers.
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