Following the completion of the transaction, Sharma’s shareholding in Paytm will increase to 19.42%, whereas Antfin’s shareholding will reduce to 13.50%.
One97 Communications, parent of Indian fintech platform Paytm, said in a stock market filing today that its Netherland-based investor Antfin Holding B.V. will be selling a 10.30% stake in Paytm to the founder and chief executive officer Vijay Shekhar Sharma. For this purpose, Antfin will transfer its stake to Resilient Asset Management B.V., an entity 100% owned by Paytm’s Sharma.
Sharma will purchase 65,335,101 shares of the digital payments platform from Antfin through an off-market transfer. Paytm-parent adds that the closing of the transaction will occur shortly at the prevailing market price and the value of the 10.30% stake amounts to $628 million based on the closing price as on August 4. Shares of One97 Communications closed at Rs 796.60 on NSE on August 4 and Rs 795.45 on BSE. Share of the company trading 6.34% higher at Rs 845.85 on BSE at 1:12 pm today.
In addition, Resilient Asset Management will issue Optionally Convertible Debentures (or OCDs) to Antfin in consideration for the transfer, and to retain the economic value of the stake. Following the completion of the transaction, Sharma’s shareholding in Paytm will increase to 19.42%, whereas Antfin’s shareholding will reduce to 13.50%.
As per the agreement executed between the said parties, Resilient Asset Management will also acquire voting rights in the company. One97 Communications says that no cash payment will be made for this acquisition and that there will be no change in the management or control of Paytm following the closing of the transaction.
A key player in the Indian financial technology sector in India, Paytm offers a wide range of financial services, including payments, e-commerce, banking, and more. The Noida-based company was founded in 2010 by Vijay Shekhar Sharma and initially started as a prepaid mobile and DTH recharge platform. Over the years, the fintech company has diversified its services and offerings, expanding into e-commerce, banking, insurance, and more.
Paytm reported a 61% year-on-year revenue growth to Rs 7,990 in FY2023 driven by payments monetization and the growing scale of its loan distribution business. In the fourth quarter of the previous financial year, the company’s revenues grew 51% year-on-year to Rs 2,334 crore.