NEW DELHI: Japanese investor Softbank representative is exiting from the board of listed fintech firm Paytm as part of its global policy. The investment giant would also be leaving the board of Policybazaar. One97 communications, the parent firm of Paytm, informed the stock exchanges on Tuesday that SoftBank’s Munish Varma, a non-executive, non-independent director on its board, has stepped down due to ‘personal commitments and other pre-occupations’.
“Munish Ravinder Varma as Non-executive, Non-Independent Director of the Company and Vikas Agnihotri, Alternate Director Munish Ravinder Varma, ceased to be Alternate Director of the Company from closure of Business hours on March 14, 2022,” Paytm said in a regulatory filing. Softbank managing partner Verma was a board member in both Paytm and Policybazaar.
According to a person aware of the development, there will be no change in investment made by Softbank in Paytm and Policy Bazaar. Softbank is a significant shareholder in the two companies and owns about 17% stake in Paytm and 12% stake in Policybazaar.The person said that the representative will step down as Softbank in 90% of the portfolio companies globally has exited within six months of a company going public.
The development couldn’t have come at a more troubling time for Paytm as share price of the company has dipped about 25% in the last two sessions after the RBI barred Paytm Payments Bank from taking on new customers. The banking regulator has told the company to carry a comprehensive audit of its IT systems
Paytm stock slipped below the Rs 600 mark for the first time since it entered the public market in November 2021 at an issue price of Rs 2,150. Paytm closed the Tuesday session 12.3% lower at Rs 592. The stock has lost over 70% of its value, making it one of biggest wealth eroder of recent times.
Biggest wealth eroder
Paytm share price dipped about 25% in the last two sessions after the RBI barred Paytm Payments Bank from taking on new customers. It closed the Tuesday session down 12.3%.