One97 Communications Ltd (Paytm) share price will remain in focus today as the company had announced on Monday that its board has approved rights issue investments of ₹300 crore in Paytm Money and ₹155 crore in Paytm Services to bolster its core operations.
Paytm’s rights issue details and other announcements
The payment firm’s broking arm has been losing active clients to competitors over the past 18 months due to rising competition and the entry of new players.
OCL plans to subscribe to a rights issue of equity shares worth up to ₹300 crore in Paytm Money and up to ₹155 crore in Paytm Services Private Ltd. (PSPL). This investment will not impact OCL’s full ownership in either subsidiary.
The company aims to complete the cash transactions within 30 days. Paytm Money (PML), which offers investment and wealth management services, recorded a turnover of ₹173 crore in FY 2024–25, marking an approximate 11% decline from ₹194 crore in the previous year.
PSPL, which specializes in manpower supply, reported a turnover of ₹252 crore for the same fiscal period.
The company also announced plans to merge its Foster Payment and First Games subsidiaries in order to streamline its group structure.
Paytm further said that its gaming subsidiary, First Games, has withdrawn from real-money gaming after the implementation of the “Promotion and Regulation of Online Gaming Act, 2025.”
“Pursuant to the publication by the Government of India in the Gazette, w.r.t. “The Promotion and Regulation of Online Gaming Act, 2025”, we have been informed by First Games that it will continue to offer other online social games, as permissible under the said Act and has discontinued its real money gaming business,” the company stated.
Paytm shares were trading in green on Monday, was up 0.62 per cent to close at ₹1,272.50.
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