Paytm Payments Bank board approves Rs 60 cr rights issue

Time & Us
Last Updated: September 7, 2017 at 12:07 am

NEw Delhi: The board of Paytm Payments Bank has approved a Rs 60 crore rights issue for its existing shareholders, including Paytm founder Vijay Shekhar Sharma, the firm said in a regulatory filing.

“…the consent of the Board is hereby accorded to issue on a right basis, 6,00,00,000 equity shares of the company of the face value of Rs 10 to the investor…,” Paytm Payments Bank said in a filing to the corporate affairs ministry.

These investors include Sharma, One97 Communications Ltd and One97 Communications India Ltd, it added.

Sharma will be issued 3.06 crore shares, while One97 Communications Ltd will be given 2.34 crore shares.

Sixty lakh shares will be issued to One97 Communications India.

The resolution was passed at the company’s board meeting on July 25, 2017, the document showed.

Paytm commenced its payments bank operations earlier this year. Sharma holds the majority share in Paytm Payments Bank, with the rest being held by Alibaba-backed One97 Communications. However, the Chinese entity does not have a direct shareholding in the payments bank.

Last year, the Reserve Bank of India had awarded in- principal nod to 11 entities for setting up payments bank operations with the objective of deepening financial inclusion in the country.

Sharma, the founder of One97 Communications that owns Paytm, was among the 11 to get the nod.

Payments banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account. PTI SR MBI BAL