Digital funds and monetary firm Paytm is trying to hive off its cost aggregator enterprise into a brand new subsidiary Paytm Payments Services Limited, in response to a discover despatched to shareholders for approval.
The firm is in search of approval of the identical from its shareholders via a rare common assembly on September 23.
“To consider and approve transfer of Payment Aggregator business to Paytm Payments Services Limited, a wholly owned subsidiary of the Company, to comply with Reserve Bank of India guidelines, being considered as sale of undertaking,” the EGM discover issued on August 31 mentioned. The new entity will embrace Paytm’s on-line cost gateway enterprise.
RBI pointers for regulation of cost aggregators (PAs) requires their enterprise to be regulated and run by a separate firm, after acquiring the license from RBI. Indicative guide worth of the brand new entity is within the vary of Rs 275-350 crore which will likely be paid to the father or mother agency One9 Communications (OCL) in 5 equal annual installments.
The precise consideration would be the derived foundation guide worth showing as of August 31, 2021. OCL’s Paytm gives digital and cost companies to 33.3 crore shoppers and over 2.1 crore retailers, as on March 31, 2021.
The firm has reported gross merchandise worth of over Rs 4 lakh crore for the monetary 12 months 2020-21. The firm is prone to launch its Rs 16,600 crore-IPO in October for which it has already filed draft papers with SEBI.