Paytm CEO and founder Vijay Shekhar Sharma has sold 1 percent of his shares in One97 Communications to its depositors for about Rs 325 crores. The amount elevated will be used for Paytm’s proposed Payment Bank Operations in which Sharma holds 51 percent stake.
Speaking about the development, Paytm representative said, “The process had done for Paytm Payment Bank Investment, and the existing stockholders have bought the shares.”
At the end of this March, Sharma got over 21 percent stake in One97 Communications. Now, from the latest sale, he would bring down his holding to 20 percent. Last year, the Reserve Bank of India (RBI) had awarded ‘in-principal’ approval to One97 Communications founder Sharma for launching a Payments Bank.
Paytm Payments Bank is in the final phase, and it is looking for a green signal from RBI, and it will start its operations after due approvals. However, CEO Vijay Shekhar Sharma grips a majority share in the new payment bank entity, and One97 Communications are holding the rest.
Earlier this week, One97 Communications also simplified its business, merging Paytm’s wallet business with payments bank operation.
China’s leading online shopping portal Alibaba Group and its partner Ant Financial hold over 40 percent in One97 communications. They had propelled in USD 680 million last year into the parent company of Paytm.
However, the Chinese body won’t have a direct shareholding in the Payments bank. Other investors of One97 Communications include SAIF Partners, Intel Capital, and SAP Ventures.