Paytm To Raise Up To INR 2,250 Cr Via Rights Issue To Boost PPSL

Fintech major Paytm’s parent One97 Communications Ltd’s board yesterday approved a proposal to raise up to INR 2,250 Cr via a right issue to further bolster its payments arm, Paytm Payments Services Ltd (PPSL).

In a filing with the exchanges, Paytm said that the capital will enable PPSL to support its working requirements and bolster its net worth. The rights issue, which is still subject to necessary approvals, is expected to be completed by December 31.

“The investment will be used to strengthen PPSL’s net worth, pay for acquisition of offline merchant payment business, fund working capital needs, and support its continued leadership in the merchant payments business,” said Paytm.

It is pertinent to note that PPSL received an in-principle authorisation from the RBI to operate as a payment aggregator (PA) in August.

This also follows the company undertaking a restructuring exercise last month. Its board approved a plan to transfer its offline merchant payments business to PPSL, in line with the Reserve Bank of India’s (RBI) regulatory requirements. In September, the central bank issued new norms, which mandated fintechs to ensure all payment aggregation activities are housed under one single licensed entity.

The latest development also comes two months after the fintech juggernaut’s board, in late-August, also approved an investment of INR 300 Cr in its investment tech subsidiary, Paytm Money.

Meanwhile, at its board meeting yesterday, the company’s board also approved the grant of 5.5 Lakh stock options to eligible employees under its ESOP 2019 scheme. Additionally, the fintech major’s board also approved the allotment of 2.05 Lakh shares under its ESOP 2019 scheme.

In the same meeting, Paytm’s board also gave its nod to the appointment of AI startup SoftHub’s founder and CEO Manisha Raj as an independent director on Paytm’s board for a period of five years. Her appointment will, however, be subject to shareholder approval at the company’s next general meeting.

The announcements came alongside Paytm’s quarterly financial statements. In Q2 FY26, the fintech major’s profit after tax (PAT) declined 98% YoY to INR 21 Cr as against INR 930 Cr in the year-ago quarter. However, Q2 FY25 numbers also included a one-time gain of INR 1,345 Cr pertaining to sale of its entertainment ticketing business, Paytm Insider, to Eternal.

Meanwhile, the fintech giant’s operating revenue surged 24% YoY and 7% QoQ to INR 2,061 Cr in Q2 FY26.

Shares of Paytm ended yesterday’s trading session down 0.53% at INR 1,268.25.

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