Major shift in Paytm ownership: Vijay Shekhar Sharma boosts stake to 19.4%
In a significant turn of events for one of India’s fintech giants, Vijay Shekhar Sharma, Founder and CEO of Paytm (One 97 Communications Limited), is set to enhance his shareholding by acquiring a 10.3% stake from Antfin (Netherlands) Holding B.V. Valued at a whopping $628 million, based on the market closing price as of August 04, 2023, this move will bolster Vijay Shekhar Sharma’s stake in Paytm to 19.42%. Simultaneously, Antfin (Netherlands) Holding B.V.’s share in the company will slim down to 13.5%.
Details of the Acquisition Deal
Driving this acquisition is Resilient Asset Management B.V., an overseas entity wholly owned by Vijay Shekhar Sharma, located in the Netherlands. Contrary to traditional methods, the agreement ensures that the acquisition will involve the issuance of Optionally Convertible Debentures (OCDs) by Resilient to Antfin (Netherlands) Holding B.V. This innovative approach means Antfin (Netherlands) Holding B.V. retains the economic value of the 10.30% stake, echoing its sustained confidence in Paytm’s business prospects. Notably, no cash exchanges hands, and Vijay Shekhar Sharma doesn’t provide any pledge, guarantee, or other value assurance either directly or indirectly.
What Remains Constant in Paytm’s Management?
Despite this significant reshuffling of ownership stakes, the management and control of Paytm will see no alteration. Vijay Shekhar Sharma will persist in his roles as the Managing Director and CEO, and the existing board remains intact. It’s crucial to note that Paytm’s structure remains unchanged, operating as a professionally managed company without any discernible promoter. Moreover, Antfin (Netherlands) Holding B.V. doesn’t hold any nominee position on the Paytm board.
Vijay Shekhar Sharma on the Ownership Transfer
Expressing his thoughts on this monumental move, Vijay Shekhar Sharma stated, “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.”