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Fintech firm One97 Communications, which owns the Paytm brand, plans to infuse Rs 100 crore in its wealth tech arm Paytm Money, the company said in a regulatory filing. Incorporated in 2017, Paytm Money is engaged in providing investment and wealth management services, including stock broking, mutual fund distribution, and other financial services. "Additional investment by the company, by way of subscription, to the equity shares of its wholly owned subsidiary, namely Paytm Money Limited (PML) by way of a rights issue for an amount up to Rs 100 crore, subject to the necessary approvals, as applicable," Paytm said in a late-night filing on Monday. The company expects to close the transaction by September 30. "PML is a wholly-owned subsidiary of the company. Issuance of up to 10 crore (Ten crore) additional equity shares of face value of Rs 10 each by PML, pursuant to the Rights Issue, will not result in a change in shareholding of the company in PML, which remains at 100 per cent,"
Global brokerage firm Jefferies has reiterated its "Buy" rating on Paytm (One 97 Communications Ltd), stating that the company's growth engine and profitability will remain intact despite regulatory action on its associate entity Paytm Payments Bank Ltd (PPBL). The company has maintained its price target of Rs 1,350, implying an 18 per cent upside. In its latest report, Jefferies stated that Paytm had already undertaken comprehensive structural changes over the past two years, following the regulator's 2024 restrictions on PPBL. These include shutting down the wallet business tied to the bank, migrating UPI handles to other partner banks, terminating inter-company agreements, and writing off its investment in the banking entity. Post the central bank's action, PPBL's board was reset, with a new chief executive being brought in, the brokerage firm noted. With these structural changes already complete, the brokerage said the licence cancellation itself has a low incremental impact on