Vijay Shekhar Sharma, the billionaire founder of Paytm, faces a vital test of investor confidence on Friday, when shareholders will decide whether they want him at the helm of a fintech firm that made one of the worst initial public offering (IPO) debuts in Indian history, Bloomberg said.
Sharma’s role as the chief executive officer (CEO) is among the items to be voted on at the company’s annual general meeting (AGM) held virtually on Friday afternoon.
According to the Bloomberg report, a proxy advisory firm last week recommended that shareholders replace Sharma as CEO, citing concerns about his ability to reverse losses at the payments provider.
Paytm, the poster boy for India’s tech start-ups, has lost more than 60 per cent of its value since its high-profile public listing in November as it has struggled to convince investors of its earnings potential.
Sharma (44), in an interview last month, said Paytm is set to become the country’s first internet firm to hit $1 billion in annual revenue and pledged a shift from growth toward profitability.
One 97 Communications Ltd., the parent firm Paytm, listed on the exchanges as counts Ant Group Co.’s Antfin (the 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 buy rating, while three each recommend hold and sell on the stock.
Shareholders should vote against Sharma’s reappointment, and the board must bring in a professional to the role, Institutional Investor Advisory Services India Ltd. said last week. Before listing, Sharma, on several instances, publicly talked about the company turning profitable, and yet it hasn’t happened even at an operational level, the firm said.
Shares of One 97 Communications were down 1.53 per cent at Rs 774 apiece on the BSE on Friday.