Vijay Shekhar Sharma to become largest shareholder in Paytm after buying 10.30% stake from Antfin Holding | Mint
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Business News/ Companies / News/  Vijay Shekhar Sharma to become largest shareholder in Paytm after buying 10.30% stake from Antfin Holding
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Vijay Shekhar Sharma to become largest shareholder in Paytm after buying 10.30% stake from Antfin Holding

Vijay Shekhar Sharma will increase his holding in Paytm to 19.42%, while Antfin’s stake will drop to 13.5%. With this, Antfin will cease to be the largest shareholder in Paytm now.

Vijay Shekhar Sharma-Founder and CEO, PaytmPremium
Vijay Shekhar Sharma-Founder and CEO, Paytm

Paytm founder Vijay Shekhar Sharma will purchase a 10.30% stake in the company from Antfin (Netherlands) Holding BV. Antfin will transfer 6.53 crore shares of Paytm to Resilient Asset Management B.V., an entity in which Sharma owns the complete 100% stake.

Sharma will increase his holding in the company to 19.42%, becoming the largest shareholder in the fintech giant, while Antfin’s stake will drop to 13.5%.

With this, Antfin, an affiliate of China’s Ant Group Co, will cease to be the largest shareholder in Paytm.

The announcement triggered a sharp rally in Paytm share price as the stock jumped as much as 11.57%.

According to the BSE filing, Paytm's parent company One97 Communications on Monday informed that, "Vijay Shekhar Sharma (Founder, Managing Director and CEO of the Company), and Antfin (Netherlands) Holding B.V. (“Antfin"), have entered into an agreement on 7 August 2023 whereby Antfin will transfer 65,335,101 shares of the Company to an entity 100% owned by Sharma – Resilient Asset Management B.V. (“Transaction"). This implies a transfer of 10.30% of the share capital of the Company (Company / Paytm)".

Pursuant to this transaction, there would be no change in the management or control of Paytm, since Sharma would continue as Managing Director and CEO, and the existing Board would continue as is, the company added.

Post the deal, Sharma tweeted, “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".

'PAYTM SHARE PRICE'

Paytm share price surged over 11% in the early trade on Monday after the company announced that its founder Vijay Shekhar Sharma will purchase a 10.30% stake in the company from Antfin (Netherlands) Holding BV. Paytm shares rallied as much as 11.57% to 887.55 apiece on the BSE.

'PAYTM USERS INCREASE'

Recently, the fintech company announced that its average monthly users rose by 19% on-year to 9.3 crore. Paytm's merchant subscriptions stood at 82 lakhs, with 41 lakh new subscriptions over the year, according to the BSE filing.

Sequentially, the company saw merchant subscriptions increase by about 4 lahks in July 2023, Paytm said.

Further, Paytm claimed that it doled out 43 lakh loans in July this year, making the total value of loans distributed in the month 5,194 crore, at a whopping yearly growth of 148%.

Payment volumes for merchants or Gross Merchandise Values (GMV) rose 39% on-year at 1.47 lakh crore.

The fintech platform reported a narrowing of loss to 358.4 crore in its June quarter in FY2024.

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ABOUT THE AUTHOR
Mansi Jaswal
I write about gender-related issues, women's rights, women empowerment, gender equality, women's health topics, and their wealth management. Also, profiling women who have fought all odds to make their own identities in their own rights. Before Mint, I worked at Business Today and Business Standard. I studied journalism at IIMC, Delhi. Got a story idea? Email me at mansi.jaswal@htdigital.in
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Published: 07 Aug 2023, 08:54 AM IST
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