Founder and Chief Executive Officer (CEO) of Fintech giant Paytm’s parent One97 Communications, Vijay Shekhar Sharma, will purchase a 10.3 per…
Paytm representation Image (Photo:IANS)
Founder and Chief Executive Officer (CEO) of Fintech giant Paytm’s parent One97 Communications, Vijay Shekhar Sharma, will purchase a 10.3 per cent stake in the company from Antfin (Netherlands) Holding BV, Paytm said in a regulatory filing on Monday.
It is a significant development as post-transaction, Sharma’s stake in the company will rise to 19.42 per cent, and Antfin will cease to be the largest shareholder.
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The purchase will be made off-market via Sharma’s 100 per cent owned Netherlands-based entity Resilient Asset Management BV.
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“Antfin will transfer 65,335,101 shares of the Company to an entity 100% owned by Sharma – Resilient Asset Management BV,” the company said in its filing.
“As per the agreement executed between the parties, 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 the economic value of the 10.30 per cent stake, demonstrating Antfin’s continued confidence in the business potential,” the company said in the 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 said in the filing,” it added.
It is to be noted that the transaction will not have any impact on the management or control of the Company or create any liability/obligation on the Company. Paytm remains a professionally managed company with no identifiable promoter.
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