New Delhi: The founder of Paytm, Vijay Shekhar Sharma is facing the toughest test of investor confidence on Friday, with stakeholders deciding whether they want him as the fintech pioneer that made one of the worst debuts in Indian history.
Notably, Vijay Shekhar Sharma’s role as the CEO is among those items that will be voted on at the company’s annual general meeting held virtually this afternoon. Besides, a proxy advisory firm suggested last week that the shareholders replace the founder as CEO, claiming concerns over his ability to reverse losses at the payments provider.
Paytm, one of the biggest Indian tech start-ups has lost over 60% of its value since its high-profile initial public offering in November as it had a tough job in convincing investors of its earnings potential. In an interview, Sharma stated, that Paytm is ready to become India’s first internet company to hit $1 billion in annual revenue and pledged a shift from growth toward profitability.
According to Institutional Investor Advisory Services India Ltd, shareholders should vote against Sharma’s reappointment, and the board must appoint a professional to the role. Moreover, before listing, Sharma in several instances talked about the company turning profitable but it hasn’t happened even at the operational level, stated the firm.
Paytm which is listed on the bourses as One 97 Communications Ltd., consider Ant Group Co.’s Antfin (Netherlands) Holding BV., SoftBank Group Corp., and Canada Pension Plan Investment Board among its top shareholders. Of the dozen analysts covering the firm, six have a buying rating, while three each recommend a hold and sell on the stock.
