Mumbai, Aug 21 (IANS) Nearly five years after its IPO, Paytm still has Rs 1,686 crore of IPO proceeds unutilised and is now seeking shareholder approval to broaden the permitted use of the funds and extend the utilisation timeline, reflecting a measured approach to capital deployment and operational discipline.
According to One 97 Communications Limited’s 26th Annual General Meeting (AGM) notice, Rs 2,000 crore from the IPO was originally earmarked for investing in new business initiatives, acquisitions and strategic partnerships. As of July 20, 2026, the company had deployed Rs 314 crore, leaving Rs 1,686 crore unutilised.
The mobile payments company said it has focused its investments so far in the core business over this period with a focus on acquiring customers and merchants, while building technology across payments and financial services including lending, insurance and wealth management. The company said these businesses have developed “strong momentum and attractive unit economics through organic investment.”
The company added that the approach has been validated by the full-year profitability it achieved in FY26, and that the core ecosystem should remain a priority area for investment going forward.
Paytm now proposes to channel a portion of the remaining Rs 1,686 crore towards these core business priorities, while continuing to use some of the funds for new business initiatives, acquisitions and strategic partnerships. The proposed change would allow the company to deploy the funds across these existing purposes without maintaining separate allocations, while ensuring the funds are deployed productively in support of “sustained, profitable growth.”
Importantly, Paytm is not seeking to introduce a new purpose for utilisation. The company said the overall amount remains unchanged and the purposes for which the IPO funds were originally raised continue to remain relevant to its business.
Paytm is also seeking an additional two years, until March 2029, to utilise the remaining funds. The company said the extended timeline would give management the flexibility to pursue opportunities that “maximise shareholder value.” The proposed variation does not introduce any new object unrelated to the purposes disclosed in the IPO prospectus.
Paytm had received net IPO proceeds of Rs 8,119.4 crore. As of July 20, 2026, Rs 6,433.4 crore had been utilised, leaving Rs 1,686 crore.
The proposal requires shareholder approval through a special resolution and will be considered at Paytm’s AGM on September 15, 2026.
–IANS
pk
