One 97 Communications Ltd (Paytm), a leading digital payments and financial services company, has decided not to proceed with its proposed bonus share issue for the time being, choosing instead to prioritise growth and profitability to create long-term shareholder value.
The company said the Board, after evaluating the proposal and holding detailed deliberations, concluded that continuing to compound growth and strengthen profitability would be a better use of capital at this stage.
Investment in Paytm Money
The Board also approved an additional investment of up to ₹100 crore in wholly owned subsidiary Paytm Money Ltd through a rights issue.
The investment will support Paytm Money’s growth plans, including technology investments, regulatory capital requirements and the expansion of its investment and wealth management businesses such as stock broking, mutual fund distribution and other financial services.
IPO fund utilisation
The Board has also approved a proposal to seek shareholders’ approval to revise the utilisation of the remaining IPO proceeds.
As of July 20, 2026, ₹1,686 crore out of the ₹2,000 crore earmarked for general corporate purposes remained unutilised.
Extended timeline
The company has proposed to use the remaining funds interchangeably for strengthening the Paytm ecosystem, including customer and merchant acquisition and retention, while expanding access to technology and financial services.
It has also proposed extending the utilisation timeline for the unspent IPO proceeds until March 31, 2029. According to the company, the move will provide greater flexibility to allocate capital towards high-value opportunities while continuing to strengthen its core payments and financial services business, which has supported its return to profitability.