Mumbai, August 21 (IANS). Even after almost five years of IPO, Paytm has unused IPO amount of Rs 1,686 crore. Now the company is seeking the approval of the shareholders to expand the scope of permitted purposes of using these funds and extend the time limit for their use. This reflects the company's balanced approach to capital utilization and operational discipline.
According to the 26th annual general meeting (AGM) of Paytm's parent company One97 Communications, the Rs 2,000 crore raised from the IPO was originally earmarked for investment in new business ventures, acquisitions and strategic partnerships. By July 20, 2026, the company had spent Rs 314 crore, while Rs 1,686 crore is still unutilized.
The mobile payments company said it focused on investing in its core business during this period. This includes growing the customer and merchant base and developing technology for payments and financial services (including lending, insurance and wealth management).
According to the company, these businesses have developed “strong momentum and attractive unit economics through organic investment.”
The company said this strategy is reinforced by the full year profitability achieved in FY26 and its core business ecosystem will continue to be a priority area for investment going forward.
Now Paytm has proposed that a part of the remaining Rs 1,686 crore be used for these core business priorities. Additionally, some of the funds will continue to be used for new business ventures, acquisitions and strategic partnerships.
The proposed change will allow the company to use funds among these existing purposes and will not need to maintain separate allocations. Its aim is to support “sustainable and profitable growth” by using funds productively.
Importantly, Paytm does not want to add any new purpose for the use of funds. The company said there will be no change in the total amount and the purposes for which the IPO funds were raised are still relevant to its business.
Paytm is also asking for an additional two-year deadline to utilize the balance, i.e. till March 2029. According to the company, the extended timeline will give management more flexibility to take advantage of opportunities that can “maximize shareholder value”. The proposed changes do not include any new objectives other than those stated in the IPO prospectus.
Paytm had received a net amount of Rs 8,119.4 crore from the IPO. As of July 20, 2026, Rs 6,433.4 crore had been utilized, while Rs 1,686 crore was left.
This proposal will require approval of shareholders through a special resolution. This will be considered in Paytm's AGM to be held on 15 September 2026.
–IANS
abs