Paytm Now Counts Vijay Shekhar Sharma As One Of Its Largest Shareholders

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Vijay Shekhar Sharma to become Paytm’s top shareholder, here is how

New Delhi: By agreeing to purchase 10.3 per cent of One97 Communications Limited from Antfin (Netherlands) Holdings BV for $628 million, Paytm CEO and founder Vijay Shekhar Sharma is now going to become the company’s largest stakeholder. As a result of the transaction, One97 Communications, which does business as Paytm, will now be owned mostly […]

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August 8, 2023 13:36 IST
Vijay Shekhar Sharma to become Paytm’s top shareholder, here is how
Vijay Shekhar Sharma to become Paytm’s top shareholder, here is how

New Delhi: By agreeing to purchase 10.3 per cent of One97 Communications Limited from Antfin (Netherlands) Holdings BV for $628 million, Paytm CEO and founder Vijay Shekhar Sharma is now going to become the company’s largest stakeholder. As a result of the transaction, One97 Communications, which does business as Paytm, will now be owned mostly by Indians rather than Chinese.

Due to its decreased stake of 13.5%, Antfin is no longer Paytm’s top shareholder. After the deal closes, Sharma’s stake in the firm will climb to 19.42%.

At the previous close of Rs 796.6 per share, Sharma’s acquisition of Antfin’s interest in Paytm is worth $628 million. Sharma’s foreign company, Resilient Asset Management, will be responsible for the purchase.

Sharma, when asked about the transaction, proudly said that Paytm is a real advocate of made-in-India financial innovation. He also elaborated on how the business has helped expand access to formal financial services in India by changing mobile payments.

With this deal in place, neither the management nor the control of Paytm would change, since Sharma would remain in his role as Managing Director and CEO and the current board would remain in place.

“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.

In order to comply with regulations, Antfin had to reduce its 29.6 per cent interest in Paytm to below 25 per cent before the business could be listed.

While Alibaba Group sold off all its 6.26 per cent direct ownership in the business in January and February, its affiliate Antfin retained its position as the company’s largest stakeholder, holding onto about 25 per cent.

The new structure, according to Shriram Subramanian, Managing Director of InGovern, also keeps the business below the SAST (Substantial Acquisition of Shares and Takeovers) threshold of 25%.

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