Paytm Converts ₹197 Crore Loan to Equity in Gaming Subsidiary, Approves ₹90 Crore Default Loss Guarantee

One 97 Communications Limited has announced two major corporate decisions through an official regulatory disclosure filed on April 16, 2026. The company approved these strategic moves as part of its ongoing business optimization efforts, with both transactions complying with SEBI Listing Regulations under Regulation 30.

Loan-to-Equity Conversion in Gaming Subsidiary

The company has approved the conversion of an outstanding loan along with unpaid interest, amounting to approximately ₹197 crore, into equity shares of First Games Technology Private Limited (FGTPL). This step-down subsidiary had discontinued its online real money gaming business with effect from August 25, 2025, following regulatory changes under "The Promotion and Regulation of Online Gaming Act, 2025".

Transaction Details: Specifications Loan Amount: ₹197 crore (including unpaid interest) Equity Shares Issued: 19,67,70,855 shares Share Value: ₹10 each at par Current Shareholding: 55% Post-Conversion Shareholding: 82.6% (fully diluted basis) Completion Timeline: By April 30, 2026

The conversion will be completed through the company's wholly owned subsidiary Paytm Services Private Limited. One 97 Communications had previously fully impaired its equity and loan investment in FGTPL, ensuring this conversion has no financial impact on the company's books.

FGTPL Financial Performance and Background

FGTPL was incorporated on November 13, 2017, and operated in the online real money gaming space until business discontinuation. The subsidiary's financial trajectory reflects the impact of regulatory changes on the online gaming sector.

Financial Metrics: Performance Networth (March 31, 2025): ₹(267.08) crore Turnover (FY 2024-25): ₹90.82 crore Turnover (FY 2023-24): ₹213.54 crore Turnover (FY 2022-23): ₹320.58 crore

The declining turnover pattern demonstrates the regulatory impact on the gaming business, with revenue dropping significantly from ₹320.58 crore in FY 2022-23 to ₹90.82 crore in FY 2024-25.

Default Loss Guarantee for Lending Operations

In line with its existing loan distribution business model, One 97 Communications has approved a Default Loss Guarantee of up to ₹90 crore for loans disbursed by Piramal Finance Limited as the lending partner. This guarantee mechanism supports the company's role in facilitating loan distribution to customers.

Guarantee Parameters: Details Guarantee Amount: Up to ₹90 crore Lending Partner: Piramal Finance Limited Guarantee Form: Bank Guarantee or Fixed Deposits Revenue Model: Sourcing fee and collection fee Financial Impact: Up to ₹90 crore guarantee expenses over time

The company earns revenue through sourcing fees and collection fees on loans distributed through this model. The guarantee arrangement represents a financial commitment that aligns with One 97 Communications' established lending facilitation operations.

Regulatory Compliance and Corporate Structure

Both transactions comply with SEBI Listing Regulations and require disclosure under Regulation 30. The loan-to-equity conversion requires no additional regulatory approvals beyond standard compliance procedures. As a professionally managed company without identified promoters, One 97 Communications confirmed that group companies have no interest in the default loss guarantee transaction with Piramal Finance Limited.

The official disclosure was filed with BSE Limited (Scrip Code: 543396) and National Stock Exchange of India Limited (Symbol: PAYTM), with complete details provided in accordance with SEBI Master Circular requirements. The disclosure is also hosted on the company's investor relations website for public access.

One 97 Communications Limited has successfully incorporated a wholly owned step-down subsidiary in Indonesia, marking another milestone in the company's international expansion strategy. The new entity, PT Paytm Indonesia Teknologi, was established on April 10, 2026, through the company's existing subsidiary structure.

Incorporation Details and Investment Structure

The incorporation was executed jointly by Paytm Cloud Technologies Limited (PCTL), a wholly owned subsidiary of One 97 Communications, and Paytm Singapore Pte. Ltd., which is a wholly owned subsidiary of PCTL. This layered subsidiary approach demonstrates the company's strategic structuring for international operations.

Parameter: Details Incorporation Date: April 10, 2026 Entity Name: PT Paytm Indonesia Teknologi Share Subscription: 15,00,000 equity shares Share Value: Indonesian Rupiah 10,000 each Total Investment: Indonesian Rupiah 15 billion INR Equivalent: ₹8.15 crore (approximately)

Strategic Expansion Through Subsidiary Network

The establishment of Paytm Indonesia represents a continuation of the company's international expansion plans, building upon its previous disclosure dated December 22, 2025. The subsidiary structure allows One 97 Communications to leverage its existing operational framework while maintaining strategic control over its Indonesian operations.

The incorporation follows regulatory compliance under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders and regulatory authorities.

Corporate Governance and Compliance

The company has maintained proper disclosure protocols, with Company Secretary and Compliance Officer Sunil Kumar Bansal (FCS 4810) overseeing the regulatory filings. The disclosure was made to both BSE Limited (Scrip Code: 543396) and National Stock Exchange of India Limited (Symbol: PAYTM), ensuring comprehensive market communication.

Additional details regarding this incorporation will be made available on the company's investor relations website at ir.paytm.com, providing stakeholders with continued access to relevant corporate developments.

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