Shareholders of One97 Communications, the company that operates the Paytm brand, have approved the proposal to re-appoint Vijay Shekhar Sharma as Managing Director and Chief Executive Officer.
New Delhi: Shareholders of One97 Communications, the company that operates the Paytm brand, have approved the proposal to re-appoint Vijay Shekhar Sharma as Managing Director and Chief Executive Officer. Is. He will now continue as CEO and MD. One97 Communications gave this information in an investigative report filed on Sunday.
According to the investigator’s report, in the annual general body meeting held on Friday, 99.67 per cent shareholders were in favor of Sharma’s reappointment to the post and only 0.33 per cent shareholders voted against the proposal.
However, investor advisory firm IIAS had recommended against re-appointment of Sharma to the post. IIAS had said that Sharma had made several promises in the past to make the company profitable, but these promises were not fulfilled. Shareholders also approved the salary package of Madhur Deora, chairman and group chief financial officer, along with Sharma.
About 94.48 per cent shareholders voted in favor of Sharma’s remuneration and 5.52 per cent opposed it. Similar support was found in the case of Deora’s proposal to approve remuneration.
On August 19, a meeting was held regarding Vijay Shekhar Sharma, the founder and CEO of Paytm. In the shareholder meeting, it was to be decided whether Shekhar would lead Paytm or some other person would be given this responsibility.
When Paytm launched its share, its price band was fixed at Rs 2080-2150. Since then the stock started declining gradually. The stock of Paytm fell to Rs 1955 on 18 November. Let us tell you, on the day of listing, it fell 27 percent and closed at Rs 1564. At present, the price of one share of Paytm has gone up to Rs 772. That is, there has been a total decline of about 64 percent. The maximum price of the share after launch is Rs 1955 and the 1-year low price is Rs 510.
Questions have been raised many times regarding the business model of Paytm. Senior banker Aditya Puri questioned the business model of financial services company Paytm, saying that the company has garnered customers by giving ‘cashback’ and not through services. There is a decline in the stock of Paytm, due to which the investors have suffered heavy losses.