The Paypers

This decision comes as the deadline mandated by the Reserve Bank of India (RBI) inches closer, it told stakeholders in a notice issued on 31 August 2021. It is expected to seek approval for the same from its investors through the general meeting scheduled for 23 September 2021.

The move is in sync with the guidelines of the Reserve Bank of India, which asks payment aggregators to be run as a separate company after obtaining a license from the central bank. The indicative book value of Paytm's payment business, which includes gateway business is around USD 47 million which will be paid to One97 Communications Ltd in five equal annual instalments, as per the notice.

The actual consideration will be the derived basis book value appearing as of 31 August 2021. Paytm, which is targeting an initial public offering (IPO) of USD 2.2 billion, offers payment, commerce and cloud and financial services to 333 million consumers and over 21 million merchants.

Paytm to create new company for payments business