Paytm To Invest Rs 455 Crore In Subsidiaries Paytm Money, Paytm Services Via Rights Issue
Paytm also approved the transfer of the full stake in Foster Payment Networks Pvt. from subsidiary Paytm Financial Services Ltd to itself to make it a wholly owned subsidiary.
Paytm parent One 97 Communications Ltd approved on Monday the investments by the company in two wholly owned subsidiaries Paytm Money Ltd and Paytm Services Pvt. through rights issues worth Rs 455 crore.
The company plans to purchase equity worth Rs 300 crore in Paytm Money, and Rs 155 crore in Paytm Services, subject to necessary approvals, according to a regulatory filing.
Paytm also approved the transfer of the full stake in Foster Payment Networks Pvt. from subsidiary Paytm Financial Services Ltd to itself to make it a wholly owned subsidiary. The transaction is valued at Rs 61 crore.
The company also proposed transfer of equity shares of First Games Technology Pvt. from being a subsidiary of Paytm Cloud Technologies to Paytm Services, amounting to Rs 140 crore. First Games has discontinued its real-money gaming business post the passing of the Online Gaming Bill 2025, informed Paytm, adding that it will continue to offer other online social games.
Paytm further noted that "First Games is considered as a joint venture from the Group's consolidation perspective and does not form part of OCL (Paytm)'s consolidated revenues."
For the quarter ended June 30, OCL's share of earnings from First Games, represented less than 1% of the company's consolidated profit or loss. Paytm's financial exposure to First Games is limited to a shareholder loan of approximately Rs 200 crore, inclusive of accrued interest, stated the filing.
Shares of Paytm ended 0.62% higher at Rs 1,276.10 per share on Monday, marginally outperforming the benchmark NSE Nifty 50, which closed 0.39% higher.
