The central bank will also appoint an IT audit firm to conduct a comprehensive systems audit of the company’s IT system.
Munish Varma, a managing partner at SoftBank, resigned from the board of One97 Communications, Paytm’s parent company, on Tuesday. Varma was a non-executive and non-independent director on the board of directors of the company that owns the Paytm app. The resignation is consistent with SoftBank’s stated practice of stepping down from the boards of directors of investee companies after listing.
After Varma’s resignation, Vikas Agnihotri, his deputy director, also resigned, Paytm said in a scholarship application.
SoftBank currently owns a 17.4% stake in Paytm, according to recent stock data from BSE. Last week, the Reserve Bank of India banned PayTm Bank from taking on new clients. The central bank’s order hurt the company’s share price, which crashed to a record low of Rs 585 on Tuesday.
The stock is down more than 20% in the last two trading sessions and 72% from the bid price, at the IPO, of Rs 2,150.
An IT audit firm will perform a comprehensive system audit of Paytm’s IT system.
ICICI Securities said in a recent note that the company should step up its efforts to increase engagement with its existing user base to offset the negative impact of the embargo on new users. It said the “company may postpone the plan to apply for conversion in a small financial bank”.
Since its listing in November 2021, the company’s market cap has fallen by more than Rs 63,000 crore – from Rs 1.01 lakh crore on the day of the listing to Rs 37,924 crore on Tuesday, Bloomberg data shows. By contrast, the stake of private investors increased from 2.79% to 3.49% at the end of December.
This post Munish Varma, managing partner at SoftBank, resigns from Paytm board was original published at “https://www.financialexpress.com/market/munish-varma-managing-partner-at-softbank-resigns-from-paytm-board/2462061/”