Vijay Shekhar Sharma to buy 10% stake in Paytm; stock rallies 9%

• The Paytm the stock has rallied over 44% in the last six months.
• Sharma will purchase 10.3% shareholding in Paytm from Antfin through his 100% owned overseas entity
• There will be no change in the management or control of Paytm.

Fintech firm One97 Communications Founder and CEO Vijay Shekhar Sharma will acquire 10.30% 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.

Paytm shares rallied on this news and shot up as much as 9%. At the time of publishing, the scrip is trading at Rs 850 a share, up close to 7%. It is noteworthy that the stock has rallied over 44% in the last six months.

As per the deal, Sharma will purchase 10.3% shareholding in Paytm from Antfin through his 100% owned overseas entity Resilient Asset Management BV. Resilient Asset in return will issue debt instrument OCDs (optionally convertible debentures) to Antfin.

"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," a BSE filing said.

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.

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

"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.

(With text input from PTI)