Paytm shelves bonus share proposal, commits Rs 100 crore to Paytm Money
21 Jul 2026, 11:19 AMThe capital infusion in Paytm Money will be used towards technology investments, regulatory capital requirements and expanding the company's investment and wealth management offerings.
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One97 Communications, which operates Paytm, has shelved plans for its maiden bonus share issue for now, choosing instead to prioritise business expansion and profitability as it looks to create long-term shareholder value.
The company's board discussed the proposal at its meeting on July 20 but decided not to proceed with it "at this time", according to a stock exchange filing. Paytm said it may revisit the proposal at a later date.
The fintech firm had informed stock exchanges on July 15 that it would consider the bonus issue alongside its April-June quarter results. It had not disclosed the proposed bonus ratio or a record date. Had it been approved, it would have marked Paytm's first bonus issue since its stock market debut in November 2021.
Paytm has also approved an investment of up to Rs 100 crore in its wholly-owned subsidiary Paytm Money. The capital infusion will be used towards technology investments, regulatory capital requirements and expanding the company's investment and wealth management offerings. The subsidiary recorded a turnover of Rs 212.95 crore in FY26, up from Rs 172.93 crore in the previous fiscal. As Paytm already owns the entire business, the capital infusion will not alter its ownership structure.
The company will also seek shareholder approval to revise the utilisation of Rs 1,686 crore in unspent initial public offering proceeds and extend the deadline for deployment to March 2029. The funds were originally earmarked for new business initiatives, acquisitions and strategic partnerships. Paytm is now seeking the flexibility to also use the capital for acquiring and retaining consumers and merchants, and strengthening its payments and financial services ecosystem.
Meanwhile, the fintech major reported a 79% year-on-year increase in consolidated net profit to Rs 220 crore for the June quarter, up from Rs 123 crore a year ago. Revenue from operations rose 28% to Rs 2,448 crore from Rs 1,918 crore during the same period.
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