: About 99.7% of shareholders of PaytmParents of One97 Communications voted in favor of the re-appointment resolution Vijay Shekhar Sharma as CEO & CEO of the company and approve his remuneration. Other resolutions, including re-appointment Ravi Chandra Adusumalli and Madhur Deora on the board, was also approved with a majority vote.
Three proxy advisory firms advised shareholders to vote against resolutions appointing directors. These companies are Institutional Investor Advisory Service, Stakeholder Empowerment Service and Government Research. The advice comes after the market price of Paytm stock fell 64% from its IPO level during the start-up stock meltdown earlier this year. Large institutional investors often seek the assistance of consulting firms to decide how to vote on shareholder resolutions in the companies in which they hold shares.
Sharma has always been consistent in her propaganda that, even though the company cannot control the stock price, the business is on track and it is on track to be profitable. “Business is booming and we’re aiming to make a profit. Our marketing and acquisition costs have dropped significantly. Our business model is clear – attract paying customers. and distribute the loans,” Sharma said.
“We use payment services to attract customers and leverage the distribution of the Paytm app to grow and grow our merchant network. Userbase of 75 million users transacts with us. I allow us to have a collection and distribution model that doesn’t have to be other lenders with their current margins.”
The firm has denied the advisory firms’ allegations. It says Adusumalli nominated Vivek Mathur, managing partner at Elevation Capital, to attend the meetings shortly after announcing that he was unable to attend because he was in the US. “The resounding votes, almost 100% in favor of his re-appointment, reflect investors’ confidence in the company’s management and show that they remain confident in its growth and profitability goals.” Prior to that, in May 2022, One97 Communications’ board of directors approved the re-appointment of Sharma as MD,” the company said. “In addition, Sebi, in February 2022, voluntarily let India Inc have a separate president and MD/CEO. In most cases Nifty 50 companies, MDs are appointed on a non-rotating basis,” it added.