Paytm, a digital payments and financial services start-up, has extended the deadline for shareholders, employee, and former employees to submit their paperwork by June 30 if they want to sell their shares in the company's planned IPO.

One 97 Communications, which operates under the Paytm brand, is contemplating an initial public offering of its equity shares, which will comprise a new issue of equity shares by the business as well as an offer-for-sale of equity shares by existing shareholders.

"In the interest of providing additional time to our shareholders, due to the ongoing situation, to process all the documentation shared and dispatch them to us, we are extending the last date to submit documents for participation in the Offer from June 22, 2021 to June 30, 2021," Paytm said in a notice to its shareholders.

According to the notification, the equity holders voiced worry about not being able to fulfil the deadline of June 22 for submitting the required papers.Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), and Vijay Shekhar Sharma are among Paytm's shareholders (14.67 per cent). Berkshire Hathaway, AGH Holding, T Rowe Price, and Discovery Capital all own less than 10 per cent of the firm.

Paytm aims to raise up to Rs 12,000 crore by issuing new shares, for which it would conduct an Extraordinary General Meeting (EGM) on July 12 to seek shareholder approval. At the EGM, the firm will also seek approval to declassify Vijay Shekhar, the founder and managing director of Paytm, as a promoter.

Sharma, Paytm president and group chief financial officer Madhur Deora, chief financial officer Vikas Garg, and company secretary Amit Khera will seek shareholder approval to execute and deliver any and all other documents, papers, or instruments, issue and provide certificates, and carry out all activities required for the proposed offer.

According to a Bernstein report released on May 27, Paytm's income may quadruple to over Rs 7,000 crore by 2023, with the non-payments segment accounting for about 33 per cent of the total.Paytm is on track to break even in 12-18 months, according to the report, with improved financial discipline and strategic investments.