OCL shareholders fully approve its related party transactions with Paytm Payments Bank
(MENAFN- IANS)
New Delhi, April 3 (IANS) One97 Communications Limited (OCL) recently shared its postal ballot results with stock exchanges, where two resolutions were passed.
The two resolutions - approval of material related party transactions with its associate Paytm Payments Bank Limited (PPBL) and approval for right to nominate Directors as required under Article 113 of Article of Association of the Company - found the support of its shareholders.
OCL and PPBL material related party transactions got over 71 per cent approval from shareholders, with over 26 crores votes showing as 'abstained' as they are related party members. As per regulations, related party members can either abstain or vote against the resolution. The strong approval to the resolution reinforces the confidence and constant support of all shareholders towards the company.
The particulars of OCL's resolution on material related party transactions was shared with all member shareholders in a detailed note that has also been filed with the stock exchanges on February 24, 2022 in order to maintain full transparency. The company emphasised in the note that the related party transactions with PPBL shall not, in any manner, be detrimental to the interest of minority shareholders and will be in the best interest of the company.
OCL's shareholding in Paytm Payments Bank is governed by a shareholder agreement. All new business arrangements, or changes to existing business arrangements, between the company and Paytm Payments Bank are done at arm's length basis, and are subject to approval by the audit committee and board. The company's founder, who owns 51 per cent in Paytm Payments Bank, is not on the audit committee, and recuses himself for voting on these matters at board and shareholder meetings.
Paytm's strong business fundamentals is seen in its accelerated growth in revenues - which in the last quarter itself grew 89 per cent y-o-y to Rs 1,456 crore. In the first two months of the current quarter, the company continues to show dominance across its businesses - scaled to 4.1 million loan disbursals during the first two months of the quarter (y-o-y growth of 449 per cent), which aggregates to a total loan value of Rs 2,095 crore (y-o-y growth of 366 per cent), 105 per cent Y-o-Y increase in GMV at Rs 1,65,333 crore ($22.2 billion) and 41 per cent growth in monthly transacting users to 69.5 million. It continues to lead in the offline payments business, with the number of devices deployed growing to 2.6 million.
--IANS
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