In lieu of the investment, the IPO bound One97 Communications will be issued optionally convertible debentures up to Rs 491.93 crore by VSS Holdings Pvt Ltd, as well as inter-corporate deposits (ICDs) worth Rs 250.79 crore.
One97 Communications Ltd, the parent company of Paytm is going to initiate talks with shareholders to extend a loan of Rs 743 crore to two holding companies. These companies are owned by none other than the Paytm founder and CEO Vijay Shekhar Sharma. The amount granted will be invested in Paytm’s insurance business.
In lieu of the investment, the IPO bound One97 Communications will be issued optionally convertible debentures up to Rs 491.93 crore by VSS Holdings Pvt Ltd, as well as inter-corporate deposits (ICDs) worth Rs 250.79 crore. The ICDs can be issued in one or more tranches. Further, the company’s board of directors has already cleared the loan decision.
Last year, a wholly-owned subsidiary of the company, Paytm Insurance Broking Pvt Ltd, received its license to sell life and non-life insurance from the Insurance Regulatory Authority of India (IRDAI). One97 also approved a Rs 90-crore investment in Paytm Insurance Broking Pvt Ltd, even as it saw its business shrink because of the pandemic. In FY21, One97 Communications saw its revenue from operations fall from Rs 2,942 in FY20 to Rs 1,701.
Source: Business World
