Munish Ravinder, managing partner of Varma Softbank, has left the board of the digital financial services company One97 Communications and PB Fintech, which operates under the Paytm brand, in accordance with regulations presented by the two companies on Tuesday.
A special report by Reuters on Tuesday, citing a source with direct knowledge of the matter, showed that SoftBank representatives would leave the boards of Paytm and Policybazaar. But there would be no change in the investment that Softbank makes in these companies.
The decision is part of SoftBank’s overall strategy to exit the boards of most listed portfolio companies, the source said, adding that the Japanese technology conglomerate hoped it would leave fewer regulatory issues to deal with.
Softbank Vision Funds India Holdings (Cayman) has a 17.47 percent stake in Paytm.
“Munish Ravinder Warma, the company’s non-executive and non-independent director, has submitted his resignation letter on March 14, 2022, following the closing date of March 14, 2022, due to personal and other commitments.” Paytm said of the regulation in a dossier.
PB Fintech, which has brands like Policy Bazaar, Paisa Bazaar, announced the resignation of Mr. Varma from his board. Softbank has a 5.77 percent stake in PB Fintech.
Japanese investor Softbank is removing Paytm and Policy Bazaar from its board of listed Indian entities as part of its global policy.
“As part of the global policy, the Softbank representative will leave the board of listed Indian companies. In this case, there are two entities in India: Paytm and Policy Bazaar. These companies have been informed of the decision,” another source said. the development told PTI.
The source also told PTI that Softbank, 90 percent of the world’s portfolio companies, had left in six months.
One 97 Communications Ltd’s share price of Paytm’s parent company fell another 10 per cent on Tuesday, reaching an all-time low.
The script has fallen by more than 20 per cent in the last two days after the Reserve Bank of India (RBI) banned Paytm Payments Bank from introducing new customers.
Last week, the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank and asked it to appoint an IT audit firm to conduct a comprehensive audit of its computer system.
The company’s market capitalization fell below 40 40 billion for the first time. At the time of its IPO on November 18, 2021, the capitalization of One 97 Communications Ltd was ₹ 1.01 lakh million.
In less than four months, the company has lost more than R $ 60 billion in market capitalization.