Netherlands' Antfin Reduces Shareholding In Paytm By 10.3%, Transfers Shares To Founder & CEO

Vijay Shekhar Sharma will acquire 10.3 per cent shareholding in Paytm from Antfin through his 100 per cent owned overseas entity Resilient Asset Management BV

Vijay Shekhar Sharma, founder and CEO of fintech firm One97 Communications, will acquire 10.30 per cent stake in Paytm from Antfin (Netherlands) Holding BV through an off-market transfer in no cash deal. Antfin will continue to hold the economic rights of the stake that is being transferred to Sharma. The company in a regulatory filing said on Monday. According to the deal, Sharma will acquire 10.3 per cent shareholding in Paytm from Antfin through his 100 per cent owned overseas entity Resilient Asset Management BV.

Resilient Asset in return will issue debt instrument OCDs (optionally convertible debentures) to Antfin. According to a BSE filing, "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." 

The company is the filing said that Resilient will acquire ownership, and voting rights, of the 10.30 per cent block. 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. 

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 it is.

Based on the stock's closing price as on August 4 (Friday), the value of the 10.3 per cent stake amounts to $628 million.

Further, there is no nominee of Antfin on the board of Paytm. Antfin is an affiliate of China's Ant Group Co. "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. 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," Sharma said.

Stocks of One 97 Communications, the parent firm of Paytm, jumped 7 per cent in early morning trade. At 10.48 am, stock was trdaing at Rs 849.10 apiece, up 6.74 per cent, on the BSE on Monday.