PremiumListen to this article |
Softbank managing partner Munish Ravinder Varma has stepped down from the board of One97 Communications Ltd., the parent company of India payments pioneer Paytm, and PB Fintech, the companies said in regulatory filings on Tuesday.
"Munish Ravinder Varma , Non-executive, Non-Independent Director of the Company, has tendered his resignation vide resignation letter dated March 14, 2022, with effect from the closure of business hours on March 14, 2022, due to personal commitments and other preoccupations," Paytm said in a filing.
PB Fintech, which owns brands like PolicyBazaar, PaisaBazaar also announced the resignation of Varma from its board.
Softbank Vision Funds India Holdings (Cayman) holds a 17.47% stake in Paytm and a 5.77% stake in PB Fintech.
The decision is part of SoftBank's global strategy to exit from the boards of most of its listed portfolio companies. However, news agency PTI reported that there will be no change in investment made by Softbank in these companies.
Both Paytm, formally known as One97 Communications, and PB Fintech Ltd, the parent of Policybazaar, went public last year.
Paytm pulled off the largest-ever initial public offering in India in November, but has since suffered a raft of challenges. Its shares tumbled 27% on the first day of trading after the IPO and now trade more than 70% below the offer price.
Shares of One97 Communications Ltd further tanked nearly 13% on Tuesday.
The stock tumbled 12.28% to settle at ₹592.40 on the BSE. On the NSE, it plunged 12.71% to settle at ₹589.
On Friday, the Reserve Bank of India barred the company’s Paytm Payments Bank venture from accepting new customers, adding pressure to the company’s stock. The RBI decision is based on certain “material supervisory concerns" and the restrictions will continue pending a comprehensive audit of its information-technology systems, the central bank said in a statement. Paytm said in response that it is taking steps to comply, including the appointment of an external auditor. Existing customers aren’t affected.
