Digital financial services firm One 97 Communications, which operates under the Paytm brand, on Saturday said it has formed a joint venture general insurance company that will invest Rs 950 crore over a period of 10 years.
The proposal to set up PGIL, a joint venture firm, was approved by the board on May 20, according to a regulatory filing.
One 97 Communications will hold a 49 per cent stake in PGIL, while the rest 51 per cent will be owned by OCL's managing director Vijay Shekhar Sharma-led VSS Holding Private Limited VHPL. Paytm will hold a 74 per cent stake in the company, reducing VHPL's stake in the company.
The decision of the Paytm board came after its group firm's share purchase agreement with Raheja QBE General Insurance Company Limited did not consummate within the stipulated time frame.
In its exchange filing, OCL said that it has reappointed Sharma as its managing director for five years. Madhur Deora, the company's CFO and president, has been appointed a full-time director for the next five years.