One97 Communications, the parent company of fintech giant Paytm, is preparing to give a big gift to its investors. The company is considering the proposal to issue Bonus Shares for the first time in its history. In the upcoming board meeting to be held on July 20, along with the announcement of the financial results of the first quarter (Q1) of the current financial year, the final decision on this historic bonus issue will also be taken. Let us also tell you what kind of update has come out regarding Paytm.
One 97 Communications Limited, the parent company of digital payment platform Paytm, is planning to issue bonus shares for the first time. The fintech company has taken this decision after registering profit in the entire financial year for the first time and increasing its market share in the payment and financial services business. The company said in a communication to the stock exchanges on Wednesday that its board of directors will consider the proposal to issue bonus shares along with the financial results for the quarter ending June 30 (first quarter of financial year 2026-27) in its meeting to be held on July 20. Subject to necessary approvals, the Board of Directors will also decide the ratio and record date of the bonus shares in the same meeting.
Paytm has registered a net profit of Rs 552 crore in the financial year 2025-26, whereas it had a loss of Rs 663 crore in 2024-25. Under bonus share issue, existing shareholders are given additional shares in the ratio of their holding. Companies usually make such announcements to show confidence in their financial strength and long-term growth prospects. The issue of bonus shares is also expected to make the shares more accessible to retail investors. Paytm shares have been trading above Rs 1,000 for a long time.
'Bonus issue' is considered a very positive corporate action in the stock market. This step of Paytm will provide many benefits to investors. Under bonus shares, investors get new shares free of cost in exchange for their existing shares without any additional cost. Issuance of bonus shares increases the total number of shares of the company in the market, which makes trading in shares easier (more liquid) for small investors. Although after receiving the bonus the share price reduces proportionately, but this step shows that the management of the company is completely confident about the future growth.
