Shares of One 97 Communications Ltd (Paytm) rose 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.
Based on Friday’s closing price, the stake purchase would be worth $628 million.
Antfin will transfer 6.53 crore shares of Paytm to an entity named Resilient Asset Management B.V., in which Sharma owns the complete 100 percent stake. Post this transaction, Vijay Shekhar Sharma will become Paytm’s largest shareholder, displacing Antfin.
“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.
“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’d like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years,” said Vijay Shekhar Sharma.
Antfin will be issued Optionally Convertible Debentures (OCDs) by Resilient Asset Management B.V. in consideration for the transfer and to retain economic value, a statement from Paytm said.
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.
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