Paytm has set up a joint venture general insurance company
New Delhi:
Digital financial services firm One97 Communications Ltd (OCL), which operates under the Paytm brand, on Saturday said it has formed a joint venture (JV) general insurance company in which it has decided to invest Rs 950 crore over a period of 10 years. commitment has been made.
The company said in a regulatory filing that the proposal to set up a JV firm Paytm General Insurance Limited (PGIL) was approved by Paytm’s board on May 20.
Initially, OCL will hold 49 per cent stake in PGIL, while the remaining 51 per cent will be held by VSS Holding Private Limited (VHPL), headed by Vijay Shekhar Sharma, managing director of OCL.
Post the investment, Paytm will hold 74 per cent stake in PGIL, reducing VHPL’s stake in the company to 26 per cent.
The Paytm board’s decision came after its group firm transacted in a share purchase agreement to acquire Raheja QBE General Insurance Company Ltd., which was not concluded within the stipulated time frame.
In its exchange filing, OCL said it has re-appointed Sharma as its managing director for a period of five years. The company’s Group CFO and Chairman Madhur Deora has been appointed to its board as a whole-time director for the next five years.