Vijay Shekhar Sharma, founder, MD & CEO of One 97 Communications, which operates the payments platform Paytm Ltd. has entered into an agreement to acquire 10.3 percent of the company's shares from Antfin (Netherlands) Holdings B.V.

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Based on Friday's closing price, the stake purchase would be worth $628 million.

Antfin will transfer 6.53 crore shares of Paytm to an entity named Resilient Asset Management B.V., in which Sharma owns the complete 100 percent stake. Post this transaction, Vijay Shekhar Sharma will become Paytm's largest shareholder, displacing Antfin.

"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.

Antfin will 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.

Antfin will now cease to be the largest shareholder in Paytm, with its stake being reduced to 13.5 percent. Post the transaction, Vijay Shekhar Sharma's stake in the company will increase to 19.42 percent.

Shares of Paytm have gained nearly 50 percent so far on a year-to-date basis. This, after having corrected 13 percent from its 52-week high of Rs 914. The stock has seen a rebound after falling to an all-time low of Rs 438, which was nearly 80 percent below its IPO price of Rs 2,150.

The April-June quarter was the best quarter that the company had in terms of share price returns since its listing.

First Published:Aug 7, 2023 8:48 AM IST