Paytm CEO Vijay Shekhar Sharma Owns Maximum Shares In Company

Paytm CEO Vijay Shekhar Sharma will be acquiring a 10.30% stake from Antfin (Netherlands) Holding BV in One97 Communications through an off-market transfer in a no-cash deal.

What is the deal?

• As per the deal, Sharma will be purchasing a 10.3% shareholding in Paytm from Antfin through his 100%-owned overseas entity, Resilient Asset Management BV. He already had a stake of about 9% in the company. After the deal, he will be the largest shareholder in the company, with a total stake of 19.42%.

• This deal will also turn One97 Communications, which is the parent company of Paytm, into a majorly Indian-owned company after being largely owned by Chinese entities. However, Antfin will cease to be the largest shareholder in the fintech payments platform, from 23.8% to 13.5%.

• As per the deal, Sharma will be purchasing a 10.3% shareholding in Paytm from Antfin through his 100%-owned overseas entity, Resilient Asset Management BV. He already had a stake of about 9% in the company. After the deal, he will be the largest shareholder in the company, with a total stake of 19.42%.

• This deal will also turn One97 Communications, which is the parent company of Paytm, into a majorly Indian-owned company after being largely owned by Chinese entities. However, Antfin will cease to be the largest shareholder in the fintech payments platform, from 23.8% to 13.5%.

After the deal

• There will be no change in the management or control of Paytm. Vijay Shekhar Sharma will continue serving as the Managing Director and CEO, along with the existing board of members.

• Resilient Asset, in return, will issue debt instruments called OCDs (optionally convertible debentures) to Antfin, which will continue to hold the economic rights to the stake that is being transferred to Sharma.

• The company release read that no cash payments will be made for this transaction, and Sharma will also not provide any pledge, guarantee, or other value assurance, either directly or otherwise. Paytm remains a professionally managed company with no identifiable promoter. Further, there is no nominee for Antfin on the Board of Paytm.

“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 would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years,” said Sharma in the company release.