One97 Communications, the parent company of Paytm, has dropped its plan to issue bonus shares and instead approved an investment of up to Rs 100 crore in its wholly owned subsidiary Paytm Money. The company's board approved the investment through a rights issue. The fresh capital will be used for technology upgrades, regulatory capital requirements and expanding Paytm Money's investment and wealth management business, according to a stock exchange filing. Paytm Money offers stock broking, mutual fund distribution and other investment products. The subsidiary reported a turnover of Rs 212.95 crore in FY26, compared to Rs 172.93 crore in the previous financial year. Since Paytm owns 100% of the business, the rights issue will not change its shareholding. Along with the investment, the board also decided not to go ahead with the bonus share proposal that it had announced for consideration earlier this month. The company said it reviewed the proposal and decided to focus on growing the business and improving profitability to create long-term value for shareholders instead. The decision comes soon after Paytm reported another profitable quarter. The fintech firm posted a net profit ofRs 220 crorein the first quarter of FY27, compared to Rs 123 crore in the year-ago period. Revenue from operations also rose 28% year-on-year to Rs 2,448 crore, helped by growth in its payments and financial services business. The latest move shows that Paytm is choosing to invest more in its financial services business instead of rewarding shareholders with bonus shares. Wealth management has become an important part of the company's strategy as it looks to grow beyond payments and strengthen its presence in the online investment market. Bareback Media has recently raised funding from a group of investors. Some of the investors may directly or indirectly be involved in a competing business or might be associated with other companies we might write about. This shall, however, not influence our reporting or coverage in any manner whatsoever. You may find a list of our investorshere.
