Despite the Paytm operator reporting a spike in merchant payment volumes, shares of One97 Communications Ltd. dropped. According to a monthly update on the bourses, there was an 82% year-over-year growth in merchant payment volumes in July, reaching Rs 1.06 lakh crore.
Institutional Investor Advisory Services India Limited (IIAS) has voiced opposition to the proposal to re-appoint Vijay Shekhar Sharma as the Chief Executive Officer (CEO) of Paytm for another five years, one week before the One97 Communications AGM.
“Vijay Shekhar Sharma has made several commitments in the past to make the company profitable, however, these have not played out. We believe the board must consider professionalising the management,” the firm said in its report. IIAS is a proxy advisory firm that provides suggestions to funds on how to vote for corporate actions.
IIAS added, “We raise concerns that he (Sharma) is not liable to retire by rotation, and that he will get board permanency if he continues in a non-executive capacity following the end of his term as managing director.”
On Friday, August 19, One97 Communications, the parent company of Paytm, will host its annual general meeting (AGM). Shareholders will also vote at the meeting on the approval of the financial statements, Madhur Deora’s appointment as a full-time director with the titles of executive director, president, and group chief financial officer for a period of five years, as well as his compensation.
Another resolution authorises donations to nonprofit trusts and other funds up to Rs 10 crore annually for three years.
The payments industry major, whose IPO was the second-largest after Life Insurance Corporation, has seen a sharp reduction in share price, dropping 63.6% from its issue price of Rs 2,150 to Rs 825.50 on August 11 since the listing.