Shares of One 97 Communications, the parent entity which runs Paytm, rose over 3 percent in the early trade on August 22 after company's shareholders reappointed Shekhar Sharma as Managing Director (MD) and Chief Executive Officer (CEO) of the company.
The resolution to reappoint Vijay Shekhar Sharma as Paytm's chief executive officer and managing director was backed by 99.67 percent of shareholders who voted at the company's annual general meeting, said One 97 Communications Ltd, the fintech's parent firm, on August 21.
A total of seven resolutions were passed at the 22nd AGM of Paytm, held on August 19. These include:
1. To receive, consider and adopt the audited standalone and consolidated financial statements of the company for the financial year ended March 31, 2022, together with the reports of the board of directors and auditors thereon.
2. To appoint a director in place of Mr. Ravi Chandra Adusumalli, who retires by rotation and being eligible offers himself for re-appointment.
3. To approve re-appointment of Mr. Vijay Shekhar Sharma as managing director designated as "managing director and chief executive officer" of the company.
4. To approve payment of remuneration of Mr. Vijay Shekhar Sharma, managing director and chief executive officer of the company.
5. To approve appointment of Mr. Madhur Deora, as whole-time director designated as "executive director, president and group chief financial officer" of the company.
6. To approve remuneration of Mr. Madhur Deora, whole-time director designated as "executive director, president and group chief financial officer" of the company.
7. To approve contribution to charitable and other funds.
As many as 99.48 percent voters backed in favour of Sharma's remuneration, Paytm's said in regulatory filing.
The company, in a statement, said the resounding vote in favour of Sharma's reappointment "reflects investors’ faith" in the leadership. The vote also shows that the investors are confident about Paytm's "growth and profitability target", it added. Read More
The AGM, notably, was the first since the fintech unicorn listed on the bourses in November last year. The company's Rs 18,300 crore public offer was the biggest in India’s corporate history at the time.
Also, the Finance Ministry clarified that there is no consideration in the government to levy any charges on the UPI transactions, which may be another reason behind uptick in the stock. Paytm is one of the leading platform for UPI transactions.
“UPI (United Payments Interface) is a digital public good with immense convenience for the public & productivity gains for the economy. There is no consideration in Govt to levy any charges for UPI services. The concerns of the service providers for cost recovery have to be met through other means," the finance ministry said in a tweet.At 9:44am, the stock traded at Rs 786 apiece on the BSE, up nearly 2 percent, while the benchmark Sensex was at 59,153.66, down 492.49 points or 0.83 percent.