Paytm Shares Up 9% On Vijay Shekhar Sharma To Buy Antfin's 10.30% Stake

Antfin (Netherlands) Holdings B.V. will sell 10.3% of the company's shares to Vijay Shekhar Sharma, the founder, MD, and CEO of One 97 Communications, the company that runs the payments network Paytm Ltd. The share purchase would be worth $628 million at Friday's closing price. An organisation called Resilient Asset Management B.V., in which Sharma controls the whole 100% ownership, would get 6.53 crore shares of Paytm from Antfin. Vijay Shekhar Sharma will replace Antfin as the largest stakeholder in Paytm following this deal.

"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.

Resilient Asset Management B.V. will issue Optionally Convertible Debentures (OCDs) to Antfin as payment for the transfer and to preserve economic value, according to a statement from Paytm. With its holding now down to 13.5 percent, Antfin will no longer own its largest stake in Paytm. Vijay Shekhar Sharma's shareholding portion in the company would rise to 19.42% following the deal.

The shares of Paytm began on Monday at Rs. 865 and rose by more than 8% to Rs. 858. As of now in the year, shares of Paytm are up by close to 50%. This comes after a 14 per cent correction from its 52-week high of Rs 914.