Paytm converts 197 Cr FGTPL loan to equity, stake to 82.6%; approves 90 Cr DLG

One 97 Communications Ltd (Paytm) has approved the conversion of an outstanding loan, along with unpaid interest, totaling approximately 197 crore, to its step-down subsidiary, First Games Technology Private Limited (FGTPL), into 19,67,70,855 equity shares. This conversion will increase Paytm's aggregate direct and indirect shareholding in FGTPL from 55% to 82.6% on a fully diluted basis. FGTPL had previously discontinued its online real money gaming business due to regulatory changes, and Paytm had fully impaired its investment. The company stated that this conversion has no fresh financial impact. Additionally, Paytm approved a Default Loss Guarantee of up to 90 crore on loans disbursed by its lending partners, aligning with its loan distribution business model.