One97 Communications Limited, the company that owns online payment app brand Paytm, will continue to be led by its Managing Director and Chief Executive Vijay Shekhar Sharma for another five years. Paytm, the poster child for Indian tech startups, has lost more than 60% of its value since its high-profile IPO in November as it struggles to convince investors of its profit potential.

At the company’s 22nd annual general meeting, shareholders voted by a 99.67% majority in favor of reappointing Sharma as chief executive and CEO, Paytm said in a statement.

In February this year, the Securities and Exchange Board of India (SEBI) had made it voluntary for India Inc to have a separate Chairman and Managing Director or CEO. In its statement, Paytm said the Vijay Shekhar Sharma compensation resolution received 94.48% of votes in favor.

“We thank our shareholders for their unwavering support and confidence in our leadership. We remain committed to building a great, profitable business and creating long-term shareholder value, while driving financial inclusion in the country,” the spokesperson said in a statement.

Sharma, in his April 6 letter to shareholders, said his employee stock ownership plan (ESOP) would only vest when the stock’s market capitalization crosses the IPO level.

At Friday’s annual general meeting, Sharma told shareholders that parent company One97 does not influence the price at which shares trade but that management is working to make the company profitable.

Sharma had said that until 2018-2019 the company was in expansion mode and entered monetization mode from 2019-2020, according to attendees who attended the meeting, PTI reported.

Sharma said the company having engaged earlier, Paytm will post operating profit in the quarter ending September 2023.

“The movement of the share price is not influenced by us. There are several factors. The profitability of the company plays a very important role in it. The growth of the company plays an important role in it, but these two factors are not the only factor determining the share price,” he told shareholders.


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