Paytm CEO Buys 10.3% Stake From Ant Group, Becomes Largest Shareholder
Paytm’s founder and CEO, Vijay Shekhar Sharma, is purchasing a 10.30% stake in the company from Antfin (Netherlands) Holding BV, the parent company of China’s Ant Group.
The deal is valued at $628 million, and it will be executed through a Netherlands-based entity owned by Sharma called Resilient Asset Management.
After the transaction, Sharma’s total shareholding in Paytm will increase to 19.42%, making him the largest shareholder, while Antfin’s stake will reduce to 13.5%.
This move doesn’t lead to a change in Paytm’s management or control. Sharma will continue to serve as the CEO, and the existing board will remain unchanged. The transaction aims to consolidate Sharma’s ownership in the company and align the ownership structure.
Following the announcement of the deal, Paytm’s share price surged by more than 11%. The stock’s value jumped to around ₹887.55 per share on the Bombay Stock Exchange (BSE).
This development marks a significant change in Paytm’s ownership landscape and underscores Sharma’s commitment to the company’s growth and future endeavors.
Paytm, which is a prominent fintech company in India, has been expanding its services and user base. The company recently reported an increase in average monthly users and merchant subscriptions, as well as growth in payment volumes and loans distributed.
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Antfin, the largest shareholder in Paytm, will reduce its stake to 13.5 percent, while Vijay Shekhar Sharma’s stake will increase to 19.42 percent.
Paytm’s shares have gained 50% this year and rebounded from a low of ₹438 to ₹914. The company had its best quarter in terms of share price returns in the 2nd quarter.