The business told the markets on August 7 that Vijay Shekhar Sharma, the founder, chairman, and managing director of One97 Communications, the parent company of Paytm, had signed into a deal to purchase 10.3% of the company’s shares from Ant Financial.
According to the filing, Resilient Asset Management BV, a foreign company wholly controlled by Sharma, would acquire Antfin’s ownership in Paytm via an off-market transfer.
According to the agreement, Resilient Asset Management BV will issue Optionally Convertible Debentures (OCDs) to Antfin as payment for the transfer and to keep the economic value.
At the time of this transaction’s conclusion, Sharma’s direct and indirect ownership in Paytm will rise to 19.42%, while Antfin’s ownership would fall to 13.5%. Antfin will be replaced by Sharma as the company’s top stakeholder.
“I am pleased of Paytm’s position as a real advocate of financial innovation developed in India, as well as of our accomplishments in revolutionizing mobile payments and promoting the use of formal financial services in the nation. As we announce this change in ownership, I would like to sincerely thank Ant for their collaboration and steadfast support over the last several years, Sharma said on Twitter.
Based on Friday’s closing price of Rs 796 per share, the stake acquisition would be worth almost $628 million.
Following the news, the price of Paytm’s shares increased by more than 11% in early trading on Monday. On the BSE, the stock increased as much as 11.57 percent to Rs 887.55 a share.
In terms of a year-to-date basis, shares of Paytm have increased by close to 50%. After hitting an all-time low of Rs 438, which was roughly 80% below its listing price of Rs 2,150, the stock has now begun to rebound. In the June quarter of FY2024, the financial services platform announced a lowering of its loss to Rs 358.4 crore.
