India: Paytm founder to invest in insurance business from IPO proceeds

India: Paytm founder to invest in insurance business from IPO proceeds

FILE PHOTO: A worker adjusts a hoarding of Paytm, a digital payments firm, in Ahmedabad, India, January 31, 2019. REUTERS/Amit Dave

Paytm founder Vijay Shekhar Sharma, who will be selling 402.65 crore worth of shares in Paytm’s offer for sale (OFS), is likely to plough back a significant portion of the proceeds into the company’s general insurance arm Paytm Insurtech (PIT), a senior company executive told Mint on Thursday.

Paytm owner One97 Communications Ltd. (OCL), which is prepping for an IPO starting November 8, had earlier planned to lend 743 crore to founder Vijay Shekhar Sharma-owned investment entities–VSS Investco and VSS Holdings. As a part of the transaction, Paytm was expected to buy 491.93 crore worth of optionally convertible debentures to be sold by VSS Holdings Pvt. Ltd, in which Sharma is a director.

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