Paytm shares surge 12% as Vijay Shekhar Sharma buys 10.3% stake from Antfin

Shares of One 97 Communications Ltd (Paytm) jumped 12 per cent in Monday's trade as Founder and CEO Vijay Shekhar Sharma entered into an agreement with Antfin (Netherlands) Holding BV to purchase 10.30 per cent stake in the new-age company through his 100 per cent owned overseas entity – Resilient Asset Management B.V. With this, Antfin will cease to be the largest shareholder.

With this transaction, Sharma shareholding in Paytm would increase to 19.42 per cent directly and indirectly, whereas Antfin’s shareholding will reduce to 13.5 per cent. The transaction would be done through an off-market transfer. Paytm is expected to benefit from the new ownership structure, the company said in a press release.

Following the development, the stock climbed 11.57 to hit a high of Rs 887.55 on BSE.

Resilient will acquire ownership, and voting rights, of the 10.30 per cent block. In consideration for the acquisition of the 10.30 per cent stake, Resilient will issue Optionally Convertible Debentures (OCDs) to Antfin, which in turn will allow Antfin to retain economic value of the 10.30 per cent stake, "demonstrating Antfin’s continued confidence in the business potential."

Watch: Paytm share price surges 12% today, up 60% YTD; what's fueling the rally in Vijay Shekhar Sharma-led company's stock, should you buy?

Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Mr Sharma, directly or otherwise. 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.

"The company is not a party to the above transaction and the said Transaction will not have any impact on management or control of the Company or create any liability /obligation on the company. Paytm remains a professionally managed company with no identifiable promoter," Paytm told BSE.

Vijay Shekhar 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.”

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