Paytm parent One97 Communications to conduct 24th AGM on September 12 via video conferencing

One 97 Communications Ltd, the parent company of digital-first payments giant Paytm, announced on Wednesday, August 21, that it would conduct its 24th annual general meeting (AGM) on September 12, 2024, through video conferencing. The upcoming AGM's agenda includes considering and adopting Paytm's audited standalone and consolidated financial statements for FY24, and reports of the Board of Directors and Auditors, among other things. 

In a separate filing today, the unified payment interface (UPI) payment major announced that it would sell its movie and events ticketing business to Deepinder Goyal-led online food delivery giant Zomato for ₹2,034 crore.

‘’The 24th AGM is scheduled for Thursday, September 12, 2024, at 09:00 a.m. through video conferencing/ other audio-visual means. The AGM is being convened per the provisions of the Companies Act, 2013 read with rules made there under SEBI Regulations, 2015, and applicable circulars issued by the Ministry of Corporate Affairs and Securities and Exchange Board of India,'' said Paytm in a regulatory filing to the stock exchanges.

Also Read: Paytm proposes salary cut for board members; annual compensation capped at ₹48 lakh

Paytm to sell ticketing biz, salary cuts announced for board members

Zomato will acquire Paytm's entertainment ticketing business to strengthen its "going-out" segment in a deal that will help the troubled fintech firm sharpen its focus on core payments and financial services distribution. Paytm's entertainment ticketing business covers movies, sports, and events (live performances).

Zomato and One 97 Communications boards have approved the all-cash deal. As part of the agreement, Paytm's entertainment ticketing business will be transferred to its subsidiaries Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), followed by the sale of a 100 per cent stake in these subsidiaries (which operate the TicketNew and Insider platforms) to Zomato.

Also Read: Zomato to buy Paytm’s movie and events ticketing biz for ₹2,048 crore

Subsequently, Zomato will spin off the new business into a new app called 'District'. Under the deal, Zomato will fully acquire Orbgen Technologies Pvt Ltd (OTPL), which is into movie ticketing, for ₹1,264.6 crore and buy Wasteland Entertainment Pvt Ltd, which is into events ticketing for ₹783.8 crore.

In a separate filing, Vijay Shekhar Sharma-led Paytm also announced a salary revision for its executive members to ensure good governance. As part of the revised remuneration structure, Paytm has capped the non-executive level compensation at ₹48 lakh, with a fixed component of ₹20 lakh, subject to shareholders' approval.

Previously, the annual salaries of non-executive independent directors of Paytm's board, including Ashit Ranjit Lilani, were set at ₹1.65 crore. In contrast, that of Gopalasamudram Srinivasaraghavan Sundararajan was set at ₹2.07 crore.

“Paytm’s board of directors has opted for a significant salary revision, highlighting their commitment to the company’s responsible financial discipline and good corporate governance,” said Paytm in its statement. The revised remuneration structure, once approved, will be in effect from April 1, 2024.

Paytm also seeks shareholder approval to appoint former Indian Revenue Services (IRS) officer Rajeev Krishnamuralilal Agarwal to its board. The fintech major is also seeking shareholder approval for the reappointment of Ravi Chandra Adusumalli, Founder and co-managing partner of Elevation Capital, to its board. Adusumalli is set to retire by rotation. Elevation Capital was one of Paytm's initial backers. On Wednesday, shares of One 97 Communications settled 0.06 per cent higher at ₹573.10 apiece on the BSE.