The digital financial services company One97 Communications, which operates under the Paytm brand, said on Saturday that it has formed a joint venture insurance company, where it has committed to invest 950 billion. Rs over a period of 10 years.
The proposal to set up the joint venture company Paytm General Insurance Limited (PGIL) was approved by the board on May 20, the company said in a regulatory application.
Initially, One97 Communications (OCL) will own 49 percent of the shares in PGIL, while the remaining 51 percent will be owned by OCL CEO Vijay Shekhar Sharma-led VSS Holding Private Limited (VHPL).
Following the investment, Paytm will hold 74 percent of the shares in PGIL, reducing VHPL’s stake in the company to 26 percent.
The decision of the Paytm Board of Directors came after the transaction of its group company in a share purchase agreement to acquire Raheja QBE General Insurance Company Limited was not completed within the stipulated time frame.
In its exchange application, OCL said it has reappointed Sharma as its CEO for five years. Madhur Deora, the company’s group chief financial officer and president, has been appointed to the board as a full-time director for the next five years.
