NPCI (National Payments Corporation of India) released a statement on 26 November disclosing that it has widened its shareholder base, which sets the entity’s valuation at Rs 1,763 crore. It has done this by completing the private placement of 4.63 percent of its equity shares worth Rs 81.64 crore. Some of the 19 new shareholders include Amazon Pay, Paytm Payments Bank, PhonePe, Mobiwik, Pine Labs, Standard Chartered Bank, and PayU. This takes the total number of shareholders to 67. This comes after the total number of UPI transactions had crossed the 2 billion mark last month, October 2020.
According to the latest shareholding pattern, as of 26 November, Amazon Pay India, PayU Payments, including the new additions. PhonePe, Pine Labs, Paytm Payments Bank, IDFC First Bank, Standard Chartered Bank, etc., have 0.44 percent shareholding each, while MobiKwik and India Post Payments Bank have 0.04 percent holding each. Union Bank of India, Bank of Baroda, and Punjab National Bank hold the highest stake with 9.15 percent, whereas Canara Bank holds an 8.14 percent share. Lenders, including State Bank of India, Bank of India, ICICI Bank, HDFC Bank, HSBC, and Citibank, each hold a 7.12 percent stake.
“This broad basing exercise was done to further diversify and distribute the NPCI shareholding to a larger set of the RBI regulated entities and categories of payment industry participants. NPCI made an offer for the private placement to 131 RBI regulated entities, out of which 19 evinced interest and were allotted shares in NPCI. With this shareholding expansion, NPCI gets on-board some of the leading banks, new categories of banks, and the RBI authorized non-bank entities,” NPCI said in a statement.
“We are extremely pleased with the outcome of this exercise and the confidence expressed in NPCI’s continued growth and larger purpose. With this, we also have broad-based our shareholding to include new categories like payment banks, small finance banks, and payment system operators in addition to the existing public sector, private sector, foreign, cooperative and regional rural banks,” said Rupesh H Acharya, Chief of Finance, NPCI.