India’s Paytm Payments Bank has raised INR600m ($9.3m) from its current shareholders including founder Vijay Shekhar Sharma.
Sharma, One97 Communications and One97 Communications India pumped $4.6m, $3.5m, and $1.09m, respectively in the bank.
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In lieu of investment, Sharma has been allotted 30.6 million shares, One97 Communications 23.4 million shares, and One97 Communications India 6 million shares.
“The consent of the board is hereby accorded to issue on a right basis, 60 Mn equity shares of the company of the face value of INR10 to the investor,” Paytm Payments Bank said in a regulatory filing.
Sharma was among the 11 entities to secure in-principle nod in August 2015 from the Reserve Bank of India to launch payment banks. Payment banks are allowed to take deposits, offer internet banking, and issue ATM/debit cards. However, they are barred from issuing credit cards and lending to customers.
The bank’s majority stake is held by Sharma, with the remaining owned by Alibaba-backed One97.
