Vijay Shekhar Sharma to acquire ₹5,195 crore stakes in Paytm from Antfin

Vijay Shekhar Sharma, the founder and CEO of Paytm, has agreed to purchase 10.3% stake in the company from Antfin (Netherlands) Holding BV. According to the closing price on August 4, the share is worth $628 million (or 5,195 crore). Sharma's ownership of Paytm will rise to 19.42% following the share transfer, while Antfin's shareholding will fall to 13.5%.  

Under the agreement, Antfin will be issued OCDs by Resilient Asset Management BV in consideration for the transfer, and to retain the economic value, the filing said. The new ownership structure will likely benefit the company. 

The filing said that the closing of the transaction will occur shortly at the prevailing market price. Based on the closing price as of Friday, August 4, 2023, the value of 10.30% stake amounted to $628 million. The deal will give Resilient ownership and voting rights to the 10.30% block. 

As per the filing, there will be no cash payment made for this acquisition and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise. The deal will also not alter management control of Paytm and Sharma will continue as the Managing Director and CEO with the existing Board at the helm. 

Sharma said, “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.”