One 97 Communications, the parent company of Paytm, is simplifying its group structure through a series of strategic acquisitions. The company will acquire additional stakes in Paytm Financial Services Limited (PFSL), Paytm Emerging Tech Limited, Paytm Insuretech Private Limited, and Paytm Life Insurance Limited, increasing its ownership. These transactions aim to enhance transparency and operational efficiency, subject to regulatory approvals.
Acquisition of Paytm Financial Services Limited
One 97 Communications plans to acquire approximately 51.22% equity shares of PFSL from Mr. Vijay Shekhar Sharma and VSS Investco Private Limited for up to INR 0.5 Crores. Following this acquisition, PFSL will become a wholly-owned subsidiary of One 97 Communications. Consequently, Admirable Software Limited, Mobiquest Mobile Technologies Private Limited, Urja Money Private Limited, and Fincollect Services Private Limited will become indirect subsidiaries through PFSL’s investments.
Simplified Structure for Subsidiaries
After the acquisition of PFSL, One 97 Communications intends to simplify the group structure further by making Admirable Software Limited, Mobiquest Mobile Technologies Private Limited, Urja Money Private Limited, and Fincollect Services Private Limited direct wholly-owned subsidiaries through intra-group transactions.
Acquisition of Remaining Stakes
One 97 Communications will acquire the remaining stake in Paytm Emerging Tech Limited (formerly known as Paytm General Insurance Limited), Paytm Insuretech Private Limited, and Paytm Life Insurance Limited from Mr. Vijay Shekhar Sharma and/or VSS Holdings Private Limited for up to Rs. 3.52 crores. Upon completion, each entity will become a wholly-owned subsidiary of the Company. Specifically, the company will acquire 51% of Paytm Emerging Tech Limited, 67.55% of Paytm Insuretech Private Limited, and a 51% stake of Paytm Life Insurance Limited.
Conversion in Little Internet Private Limited
One 97 Communications will convert outstanding optionally convertible debentures and inter-corporate deposits in Little Internet Private Limited (“LIPL”), amounting to approximately INR 15 Crores. This conversion will increase One 97 Communications’ shareholding in LIPL from 62.53% to approximately 78%.
Financial Details for Target Entities
Key financial figures for the target entities include:
- PFSL: Total income of INR 0.51 Crores for the financial year ending March 31, 2025.
- Admirable Software Limited: Total income of INR 0.44 Crores for the financial year ending March 31, 2025.
- Mobiquest Mobile Technologies Private Limited: Total income of INR 33.43 Crores for the financial year ending March 31, 2025.
- Urja Money Private Limited: Total income of INR 18.59 Crores for the financial year ending March 31, 2025.
- Fincollect Services Private Limited: Total income of INR 220.47 Crores for the financial year ending March 31, 2025.
- Paytm Emerging Tech Limited: Total Income of Nil for the financial year ending March 31, 2025.
- Paytm Insuretech Private Limited: Total Income of INR 0.49 Crores for the financial year ending March 31, 2025.
- Paytm Life Insurance Limited: Total Income of Nil for the financial year ending March 31, 2025.
- Little Internet Private Limited: Total Income of INR 0.68 Crores for the financial year ending March 31, 2025.
Timeline
All transactions are expected to be completed on or before January 31, 2026.
Source: BSE
