Vijay Shekhar Sharma returns as largest shareholder of Paytm; to buy 10.30% stake from Antfin Holdings 

Paytm founder and CEO Vijay Shekhar Sharma on Monday entered into an agreement to purchase 10.30 per cent stake in Paytm from Antfin (Netherlands) Holdings BV through an off-market transfer. With this, Antfin will cease to be the largest shareholder in Paytm. Upon the completion of the transaction, Sharma’s share in Paytm will increase to 19.42 per cent, thereby making him the largest shareholder in the fintech firm.

Antfin, on the other hand, will see its shareholding decline to 13.5 per cent. Sharma’s stake purchase from Antfin is valued at $628 million, according to Paytm’s last closing price of Rs 796.6 per share. Resilient Asset Management, an overseas entity 100 per cent owned by Sharma, will make the acquisition.

As per the agreement between Sharma and Antfin, Resilient will get ownership and voting rights of the 10.30 per cent block. The overseas entity owned by Sharma will issue optionally convertible debentures (OCDs) to Antfin, allowing it to retain economic value of the 10.30 per cent stake.

The company release said that no cash payments will be made for this transaction and Sharma will also not provide any pledge, guarantee or other value assurance either directly or otherwise. There will be no changes in the management or control of Paytm as Sharma would continue to be the Managing Director and CEO of the company and the existing board would continue to function as is. There is also no nominee of Antfin on the Board of Paytm.

“Paytm remains a professionally managed company with no identifiable promoter. Further, there is no nominee of Antfin on the Board of Paytm,” the release read.

Commenting on the transaction, Sharma said that he is “proud of Paytm’s role as a true champion of made-in-India financial innovation”. He also said that the company played a key role in revolutionizing mobile payments and contributed to formal financial services inclusion in India.

 “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,” Sharma said.

Following the announcement, shares of One 97 Communications (Paytm) jumped 12 per cent in early trade. One 97 Communications’ stock hit a high of Rs 887.55 on the BSE at the time of writing this story.

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