Paytm’s parent company, One 97 Communications Limited, today announced a significant internal restructuring aimed at simplifying its complex group structure. This move places key subsidiaries directly under the parent company’s ownership.
The Board of Directors approved the plan to acquire shares that will make Paytm Financial Services Limited (PFSL) a wholly owned subsidiary by purchasing approximately 51.22 per cent equity from founder Vijay Shekhar Sharma and his holding firm, VSS Investco Private Limited, at a fair value of up to Rs 50 lakh.
This August, One 97 stock hit a new 52-week high after the Reserve Bank of India granted its unit Paytm Payments Services Ltd (PPSL) “in-principle” authorisation to operate as an online payment aggregator. This meant that Paytm would be able to onboard new customers, which RBI had barred the service from doing since November 2022.
One 97 board also approved the transfer of its offline merchant payments business to its wholly owned subsidiary, Paytm Payments Services Ltd, to comply with the RBI’s guidelines for payment aggregators.
With PFSL under the fold, all its associated investments, such as Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services, will also transition to direct subsidiaries of One 97 Communications through intra-group transfers.
Further simplification is set to happen through the full acquisition of stakes in other financial-tech affiliates, including Paytm Emerging Tech Limited (formerly Paytm General Insurance), Paytm Insuretech Private Limited, and Paytm Life Insurance Limited.
These firms will become wholly owned units following the purchase of stakes totalling up to Rs 3.52 crore, based on their net asset value.
Additionally, the parent company plans to boost its share in Little Internet Private Limited, from 62.53 per cent to nearly 78 per cent by converting convertible debentures and inter-corporate deposits worth around Rs 15 crore, further consolidating control.
One97 noted that these transactions are -party in nature but have been independently valued and conducted at arm’s length as per SEBI regulations and the Master Circular. The restructuring is expected to be completed by January 31, 2026.
