Paytm shares rise after firm discontinues inter-company pact with PPBL

Paytm share price, Paytm PPBL news: The stock of One 97 Communications, the parent company of Paytm, traded higher in the morning deals on Friday, March 3. The stock drew buying interest after Paytm and Paytm Payments Bank (PPBL) mutually agreed to discontinue various inter-company agreements.

Paytm stock rose as much as 4.99 per cent to the day's high of Rs 423.45 in early deals on NSE. Extending the gains for the second session, the counter traded at 3.89 per cent, or Rs 15.7, higher at Rs 419 on NSE at 9:49 AM.

In an official filing dated March 1, the company informed that the company and its associate entity, PPBL, have introduced additional measures to strengthen their approach towards independent operations of PPBL.

As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities. Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL's governance, independent of its shareholders.

The Board of One 97 Communications approved the termination of agreements and amendment of SHA on March 1. Paytm had announced earlier that it would sign up for new partnerships with other banks and take measures to provide seamless services for its customers and merchants.

In its intimation to stock exchanges on February 1, the company indicated the possible financial impact.

The filing also clarified that One 97 Communications Limited and its services, which include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines, will continue to work uninterrupted.

The filing added that Paytm is committed to upholding the highest standards of market-leading innovation and technology-enabled solutions for its customers.

On February 26, One 97 Communications Ltd (OCL) said that its associate bank, Paytm Payments Bank Limited, has reconstituted its Board of Directors. It appointed ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal.

In the same exchange filing, it said that founder Vijay Shekhar Sharma has resigned from the Board of Paytm Payments Bank to enable this transition.

(with agency inputs)

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