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Paytm Simplifies Group Structure, Acquires Stakes in Multiple Subsidiaries

Written by: Team Angel OneUpdated on: 15 Oct 2025, 8:39 pm IST
Paytm restructures its group entities, acquiring stakes in Paytm Financial Services, Paytm Insuretech, and other subsidiaries to streamline operations.
Paytm Simplifies Group Structure
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On October 15, 2025, One 97 Communications Limited (Paytm) announced a major restructuring plan aimed at simplifying its group structure and improving operational efficiency. The company’s board approved multiple transactions involving the acquisition of stakes in various subsidiaries and associate companies, bringing them under direct ownership.

Paytm to Make Paytm Financial Services a Wholly Owned Subsidiary

As part of the restructuring, Paytm will acquire around 51.22% of Paytm Financial Services Limited (PFSL) from founder Vijay Shekhar Sharma and his entity VSS Investco Private Limited for up to ₹0.5 crore. This move will make PFSL a wholly owned subsidiary of Paytm. PFSL reported a total income of ₹0.51 crore for FY2024-25 and provides technology and manpower services.

Restructuring Subsidiaries Under Direct Ownership

Following the acquisition of PFSL, Paytm will make Admirable Software Limited, Mobiquest Mobile Technologies Private Limited, Urja Money Private Limited, and Fincollect Services Private Limited direct subsidiaries through intra-group transactions. Admirable’s income stood at ₹0.44 crore, Mobiquest at ₹33.43 crore, Urja at ₹18.59 crore, and Fincollect at ₹220.47 crore for FY2024-25.

Read More:One 97 Communication Completes 90% Acquisition of Foster Payment Networks; Share Price in Focus!

Further Acquisitions from Vijay Shekhar Sharma-Owned Entities

Paytm will also acquire remaining stakes in Paytm Emerging Tech Limited, Paytm Insuretech Private Limited, and Paytm Life Insurance Limited from Mr. Sharma and his wholly owned companies for a combined consideration of ₹3.52 crore. This includes 51% of Paytm Emerging Tech, 67.55% of Paytm Insuretech, and 51% of Paytm Life Insurance. These entities will now become wholly owned subsidiaries of Paytm.

Conversion of Debentures in Little Internet Private Limited

In addition, Paytm will convert ₹15 crore worth of optionally convertible debentures and inter-corporate deposits in Little Internet Private Limited (LIPL) into equity, increasing its shareholding from 62.53% to approximately 78%. LIPL, engaged in e-commerce operations, reported revenue of ₹0.68 crore for FY2024-25.

One97 Communications Share Price Performance

On October 15, 2025, One97 Communications share price opened at ₹1,250.20 on NSE, above the previous close of ₹1,244.80. During the day, it surged to ₹1,283.90 and dipped to ₹1,246.90. The stock is trading at ₹1,278.30 as of 1:14 PM. The stock registered a significant gain of 2.69%.

Over the past week, it has moved up by 2.57%, over the past month, it has moved up by 3.82%, and over the past 3 months, it has moved up by 29.32%.

Conclusion

This comprehensive restructuring underscores Paytm’s strategic focus on operational transparency and efficiency. By consolidating key subsidiaries under direct ownership, the company aims to simplify its corporate hierarchy and strengthen governance as part of its long-term business optimisation efforts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Oct 15, 2025, 3:08 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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