Resilient Asset Management B.V. enters into agreement to buy 10.30% stake in Paytm from Antfin (Netherlands) Holding B.V. for $628 million

The Paytm logo is pasted on a wall at Paytm's office in Delhi
Paytm (Image: MeelBijendra/Nandini)

MUMBAI, Aug 7 (MeelBijendra) – Paytm Founder and CEO Vijay Shekhar Sharma on Monday executed an agreement to buy 10.30% shareholding in Paytm from Antfin (Netherlands) Holding B.V through its 100% owned overseas entity Resilient Asset Management B.V.

Based on the closing share price of the company on Friday, August 4, 2023, Vijay Shekhar Sharma-owned overseas entity Resilient Asset Management B.V will acquire 10.30% stake in Paytm from Antfin (Netherlands) Holding B.V through an off-market transfer, valuing it at $628 million.

Antfin (Netherlands) Holding B.V. will transfer 6,53,35,101 shares to Netherlands-based Resilient Asset Management BV, representing 10.30% of the share capital of Paytm.

Also read: Value of loans disbursed through Paytm platform grew by 167% YoY to INR 14845 Cr in Q1 FY24; Improving portfolio quality, says Paytm

Antfin previously held 23.8% stake in Paytm but as a result of this transaction, Antfin will no longer be the largest shareholder of Paytm as its stake will come down to 13.5%. On the other hand, Vijay Shekhar Sharma’s direct and indirect stake will increase from 9.12% to 19.42% in Paytm.

As per the agreement executed between Vijay Shekhar Sharma’s own overseas entity Resilient and Antfin, no cash payment will be made for the acquisition of 10.3% stake but Resilient will issue Optionally Convertible Debentures (OCDs) to Antfin which in turn will allow Antfin to retain the economic value of the 10.30% stake (Resilient will acquire 10.30% block ownership and voting rights).

Paytm’s management says that Paytm is expected to benefit from the new ownership structure, while there is no Antfin nominee on Paytm’s board. The company further added that there will be no change in management or control and Vijay Shekhar Sharma will continue as Managing Director and CEO and the existing board will continue in place.

On Monday, the stock of Paytm jumped 11.43% to Rs 887.70 on the NSE.

Also read: Paytm’s quarterly revenue up 39% on increased loan demand; ₹359 crore YoY improvement in EBITDA before ESOP