Paytm calls off its first-ever bonus issue proposal. Here’s what management said

One 97 Communications, the parent of fintech platform Paytm, has decided not to move ahead with its proposed maiden bonus share issue for now, choosing instead to prioritise business expansion and profitability to enhance long-term shareholder value.

The proposal was discussed by the company's board at its meeting on July 20, but directors decided not to proceed with it "at this time", according to a stock exchange filing. The company added that it may revisit the proposal at a later stage.

Paytm had informed stock exchanges on July 15 that the board would consider a bonus issue along with its financial results for the April-June quarter. However, it had not announced a bonus ratio or record date. If approved, it would have marked the company's first bonus issue since its listing in November 2021.


Bonus shares are issued free of cost to existing shareholders in proportion to their holdings. While they increase the total number of shares outstanding, they do not change an investor's ownership stake in the company.

Also read: Paytm remains majority Indian-owned for 2nd consecutive quarter

Had the proposal gone through, the bonus issue would have been Paytm's first major shareholder-focused corporate action since its Rs 850-crore open-market share buyback, which was announced in December 2022 and completed in February 2023.

The company had debuted on the stock market following its Rs 18,300-crore initial public offering, priced at Rs 2,150 per share. On Monday, Paytm shares closed unchanged at Rs 1,348.50 on the National Stock Exchange.

Paytm Q1 results

Paytm reported a consolidated net profit of Rs 220 crore for the June quarter, up 79% from Rs 123 crore a year earlier. Revenue from operations rose 28% year-on-year to Rs 2,448 crore, compared with Rs 1,918 crore in the corresponding quarter last year. On a sequential basis, net profit increased from Rs 183 crore in the March quarter, while revenue from operations grew from Rs 2,264 crore.

For FY26, Paytm reported its first full-year profit, posting a net profit of Rs 552 crore against a loss of Rs 663 crore in the previous year. Revenue from operations rose 22% to Rs 8,437 crore, driven by growth in its payments business, higher distribution of financial services and tighter cost controls.

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At the same board meeting, the company approved an investment of up to Rs 100 crore in its wholly owned subsidiary, Paytm Money. The funds will be used to strengthen technology, meet regulatory capital requirements and support the expansion of its investment and wealth management businesses.

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