Paytm Restructures Subsidiaries, First Games Exits Real-Money Gaming Post New Online Gaming Act

In its board meeting on August 25, 2025, One97 Communications Ltd. (OCL), the parent of Paytm, approved capital infusion into two wholly owned subsidiaries: Paytm Money Limited (PML) and Paytm Services Private Limited (PSPL).

PML will receive up to ₹300 crore, while PSPL will receive up to ₹155 crore via a rights issue to strengthen operations and support growth.

Internal Restructuring of Subsidiaries

As part of a group-wide restructuring to simplify operations:

• Foster Payment Networks Private Limited will become a wholly owned subsidiary of OCL after acquiring 100% of its shares from Paytm Financial Services Limited and other stakeholders for up to ₹61 crore.
• First Games Technology Private Limited, previously under Paytm Cloud Technologies Limited, will transfer its equity to PSPL for up to ₹140 crore, streamlining the group structure without changing overall control.

Paytm’s Exit from Real-Money Gaming

Following the publication of “The Promotion and Regulation of Online Gaming Act, 2025” in the Gazette on August 22, 2025, First Games Technology has discontinued its real-money gaming operations.

The company will continue to offer permissible online social games. The unit does not contribute to OCL’s consolidated revenues, and its carrying value in the financial statements is nil as of June 30, 2025. OCL’s only exposure is a shareholder loan of approximately ₹200 crore, including interest.

One97 Communications Limited (Paytm) Share Price

One97 Communications Limited (Paytm) shares were trading at ₹1,261.80, down ₹14.30 or 1.12% at 10:40 AM from the previous close of ₹1,276.10. The stock opened at ₹1,276.10 and moved between a high of ₹1,276.10 and a low of ₹1,257.00 in early trade, reflecting mild selling pressure following recent corporate announcements.

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Conclusion

The decisions reflect OCL’s focus on strengthening subsidiaries, simplifying corporate structure, and ensuring compliance with new gaming regulations. The capital infusion and restructuring are expected to enhance operational efficiency and reinforce the company’s fintech and digital ecosystem.

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