Paytm: Vijay Shekhar Sharma to purchase 10.3% stake from Antfin

One 97 Communications in an exchange filing has revealed that Vijay Shekhar Sharma and Antfin have entered into an agreement where Sharma will purchase a 10.3% stake in Paytm. This transaction will increase Sharma's shareholding in the company to 19.42%, making him the largest shareholder in Paytm.

Meanwhile, the holdings of Antfin would come down to 13.5%. Currently, Antfin holds 23.79% on Paytm. The company will transfer 6.53 crore shares of Paytm to an entity named Resilient Asset Management B.V., in which Sharma owns the complete 100% stake.

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Based on the stock's closing price as on August 4, the value of the 10.3% stake that would be transfered to Sharma amounts to $628 million.

"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’d like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years," Sharma said in a statement to CNBC-TV18.

Antifin would be issued Optionally Convertible Debentures (OCDs) by Resilient Asset Management B.V. in consideration for the transfer and to retain economic value, a statement from Paytm said.

Optionally Convertible Debentures are debt securities, which allow an issuer to raise capital and in return, the issuer pays interest to the investor till the maturity.

The shares of Paytm went up to 7% as of 9:30 am on Monday morning.