Paytm to shift its payment aggregator business to new subsidiary, Details here

IPO-bound Paytm is seeking approval from its shareholders in an extraordinary general me­eting (EGM) on September 23, to turn its payment aggregator business into a new subsidiary called Paytm Payments Ser­vices Limited.

This follows a directive from the Reserve Bank of India (RBI). In a notice to shareholders, Paytm sought approval from them to “consider and ap­prove transfer of payment ag­gregator business to Paytm Pay­ments Services, a who­­lly-owned arm of the company, to comply with the RBI guidelines”.

Paytm is gearing up to come up with the country’s biggest initial public offering (IPO) of Rs 16,600 crore, which may hit the bourses in October, with valuation likely to be in the range of Rs 25,000-30,000 crore. The company has recorded a gross merchandise value of over Rs 4 lakh crore, which is the highest in the payments industry, as per RedSeer’s analysis.

The company will seek shareholders’ nod to appoint WhatsApp former chief business officer Neeraj Arora and Saama Capital Managing Partner Ashit Ranjit Lilani as non-executive independent directors. It will also seek to rope in Ant group Senior Vice-President Douglas Feagin as a director of the company for a period of three years from the financial year 2021-22 to 2023-24.

Paytm has proposed remuneration of Rs 1.85 crore each for independent directors Mark Schwartz and Pallavi Shardul Shroff, and Rs 1.48 crore each for Arora and Lilani. The company will also seek approval for a donation of up to Rs 1.62 crore for the establishment of the Air Quality Action Forum with the United Nations Environment Programme through the Paytm Foundation.

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