Paytm Shares Soar 12% Following Vijay Shekhar Sharma’s Purchase of 10.3% Stake from Antfin
Written by Sanjay Kumar
News highlights
- Paytm shares rise 12% as CEO buys stake, Antfin’s shareholding reduced to 13.5%.
- No cash payment, ownership structure remains intact with Antfin retaining value through Convertible Debentures.
- Paytm remains professionally managed, thanks Antfin for support in financial innovation.
Paytm
Financial technology company
- Founder: Vijay Shekhar Sharma
- Founded: August 2010
- Parent organization: One97 Communications
- CEO: Vijay Shekhar Sharma (Dec 2010–)
- Revenue: 7,990 crores INR (FY23, US$1.0 billion)
- Subsidiary: Paytm Payments Bank
- Areas served: India; Japan
Shares of One 97 Communications Ltd, the parent company of Paytm, witnessed a 12 percent surge in Monday’s (August 7) trade following an agreement between Founder and CEO Vijay Shekhar Sharma and Antfin (Netherlands) Holding BV. According to the deal, Vijay Shekhar Sharma’s 100 percent owned overseas entity, Resilient Asset Management B.V., will acquire a 10.30 percent stake in the company, causing Antfin to no longer hold the largest shareholder position.
As a result of this transaction, Vijay Shekhar Sharma’s shareholding in Paytm will increase to 19.42 percent, both directly and indirectly, while Antfin’s shareholding will reduce to 13.5 percent. The off-market transfer is expected to benefit Paytm, as stated in the company’s press release. Subsequently, the stock rose by 11.57 and reached a high of Rs 887.55 on BSE.
Resilient Asset Management B.V. will obtain ownership and voting rights of the 10.30 percent block. In exchange for this stake, Resilient will issue Optionally Convertible Debentures (OCDs) to Antfin, allowing Antfin to retain the economic value of the stake, demonstrating their continued confidence in Paytm’s business potential. Interestingly, no cash payment will be involved in this acquisition, and Vijay Shekhar Sharma will not provide any pledge, guarantee, or other value assurance.
Importantly, this transaction will not result in any change in Paytm’s management or control. Vijay Shekhar Sharma will continue as the Managing Director and CEO, and the existing Board will remain unchanged.
Paytm emphasized that the company is not a party to this transaction, and it will not impact the management or control of the company, nor create any liability or obligation. Paytm reiterated that it remains a professionally managed company with no identifiable promoter.
Vijay Shekhar Sharma expressed his pride in Paytm’s role as a champion of made-in-India financial innovation and its significant contributions to revolutionizing mobile payments and promoting financial inclusion in the country. He extended his gratitude to Antfin for their unwavering support and partnership over the years.
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