New Delhi. Digital payments and financial services firm Paytm said on Wednesday that Switzerland-based reinsurer Swiss Re will buy 23 per cent stake in Paytm Insurtech for around Rs 920 crore. Paytm Insurtech (PIT), the insurance arm of Paytm, plans to leverage Paytm’s customer base and business ecosystem to develop insurance products.
Swiss Re and Paytm will work to increase the penetration of insurance in the market through investment in PIT. Paytm said in a statement that Swiss Re will invest around Rs 920 crore (through equity shares and compulsorily convertible preference shares) for a total 23 per cent stake. The investment in PIT follows the acquisition of Raheja QBE by Paytm Insurtech.
Paytm Chairman, MD and CEO Vijay Shekhar Sharma said, “We are excited to partner with Swiss Re as a key strategic investor for our insurance sector. This is an important milestone in our journey to take general insurance products to the masses.
Also read: Paytm IPO: Paytm to increase IPO size to Rs 18,300 crore, know details
Paytm is set to increase the size of its initial public offering (IPO) to Rs 18,300 crore. According to sources, the company’s largest shareholder Alibaba Group firm Ant Financial and other existing investors including SoftBank have decided to sell their majority stake in Paytm.
Earlier, the company had planned to raise a total of Rs 16,600 crore through IPO, which included fresh issue of Rs 8,300 crore and Offer for Sale (OFS) of Rs 8,300 crore. The decision to sell more stake by existing shareholders will increase the size of the OFS by Rs 1,700 crore to Rs 10,000 crore.
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Orignally published at Tailored Stash
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