The billionaire founder of Paytm faces a crucial test of investor confidence Friday, when shareholders will decide whether they want him at the helm of a fintech pioneer that made one of the worst debuts in Indian history.
Vijay Shekhar Sharma's role as the chief executive officer
is among the items to be voted on at the company's annual general meeting held
virtually this afternoon. A proxy advisory firm last week recommended that
shareholders replace the founder as CEO, citing concerns about his ability to
reverse losses at the payments provider.
Paytm, the poster boy for India's tech startups, has lost
more than 60 percent of its value since its high-profile initial public
offering in November as it has struggled to convince investors of its earnings
potential.
In an interview last month, Sharma, 44, said Paytm is set to
become India's first internet company to hit $1 billion in annual revenue and
pledged a shift from growth toward profitability.
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.
Paytm, listed on the bourses as One 97 Communications Ltd.,
counts 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 buy rating, while three each
recommend hold and sell on the stock. © Bloomberg L.P
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