Paytm Founder Vijay Shekhar Sharma has entered into an agreement to acquire 10.3 per cent stake in Paytm from Antfin (Netherlands) Holding B.V.
This acquisition will be done via his 100 per cent owned overseas entity — Resilient Asset Management B.V. — and through an off-market transfer. Resilient is based in the Netherlands.
The closing of the transaction will occur shortly at the prevailing market price. Based on the closing price as on August 04, 2023, the value of the 10.30 per cent stake amounts to $628 million, Paytm said in a filing with the stock exchanges.
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On the closing of this transaction, Sharma’s shareholding in Paytm (direct and indirect) will increase to 19.42%, while Antfin’s shareholding will reduce to 13.5 per cent.
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. 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.
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.
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Paytm remains a professionally managed company with no identifiable promoter. Further, there is no nominee of Antfin on the Board of Paytm.
Commenting on the transaction, Sharma said, “As we announce this transfer of ownership, I would like to express my sincere gratitude to Antfin for their unwavering support and partnership over the past several years.
“I am proud of Paytm’s role as a true champion of made-in-India financial innovation, and our achievements in revolutionising mobile payments and contributing to formal financial services inclusion in the country”.
Reacting to this development, Paytm shares were up about 9 per cent in early trade at NSE on Monday at ₹ 887.70 per share.