Paytm payments bank gets additional Rs 60cr through rights issue

The board of Paytm payments bank has approved a Rs 60 crore rights issue for its existing shareholders, including Paytm founder, Vijay Shekhar Sharma, the firm said in a regulatory filing.

“...the consent of the board is hereby accorded to issue on a right basis, 60,000,000 equity shares of the company of the face value of Rs10 to the investor,” Paytm payments bank said in a filing to the corporate affairs ministry.

Sharma has invested Rs 30 crore in this tranche, while One97 Communications has put in Rs 23 crore. The rest came from One97 Communications India, a subsidiary of One97. Sharma will be issued 3.06 crore shares, while One97 Communications Ltd will be given 2.34 crore shares. Sixty lakh shares will be issued to One97 Communications India. The shares were allotted on August 1, according to the documents.

To recall, Sharma and One97 had earlier invested about Rs 220 crore in the payments bank, with Sharma owning majority stake in the bank.

Earlier in May, Paytm payments bank was launched with first physical branch opening in Noida. The company said it will offer an interest rate of 4 percent per annum on deposits and aims to open 31 branches and 3,000 customer service points in its first year of operations. Paytm’s interest rate is the lowest among the three payments banks: Airtel offers about 7.3 percent interest and India Post about 5.5 percent annually.