Vijay Shekhar Sharma, Founder and CEO of One 97 Communications Limited (Paytm) has acquired an additional 10.30% stake in his fintech company from one of its earlier investors - Antfin (Netherlands) Holding B.V. (Antfin).
Based on the closing price as on August 04, 2023, the value of the 10.30% stake amounts to $628 million, according to a regulatory filing by Paytm.
On the closing of this transaction, Sharma’s stake in Paytm, both direct and indirect, will increase to 19.42 per cent, whereas Antfin’s stake will reduce to 13.5 per cent. Sharma will become Paytm’s largest shareholder, replacing Antfin.
As per the agreement executed between the parties, Resilient will acquire ownership and voting rights of the 10.30% block. In consideration for the acquisition of the 10.30% stake, Resilient will issue Optionally Convertible Debentures (OCDs) to Antfin, which in turn will allow Antfin to retain economic value of the 10.30% stake, demonstrating Antfin’s continued confidence in the business potential.
Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise.
Sharma said, “I am proud of Paytm's role as a true champion of made-in-India financial innovation, and our achievements in revolutionizing mobile payments and contributing to formal financial services inclusion in the country. As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years.”
Pursuant to this transaction, there would be no change in the management or control of Paytm, since Sharma would continue as Managing Director and CEO, and the existing Board would continue as is.
Paytm shares gained over 10% on Monday to touch a high of 887.70 on the National Stock Exchange.