Big Move in Fintech: Vijay Shekhar Sharma’s Paytm Stake Purchase Stirs Noise

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As the beep of “Paytm Karo” keeps getting louder, the shares of the FinTech company have advanced more than 16% in two sessions. Investors are currently enjoying the price of Paytm shares at Rs.840/piece.

A ground-breaking deal in the world of digital finance has cheered investors as Vijay Shekhar Sharma, the Founder and CEO of One 97 Communications Limited, teams up with Antfin to acquire a significant stake in Paytm. The move, announced on August 7, promises to redefine the landscape of the popular digital payment platform.

Under this strategic agreement, Sharma is set to take hold of a 10.3 percent stake in Paytm, marking a pivotal moment for the company. The news, freshly shared with the exchanges, has ignited enthusiasm and anticipation among investors and industry experts alike.

As the dust settles after the transaction, Sharma’s share in Paytm will surge to 19.42 percent, cementing his role as a key influencer in the company’s direction. In parallel, Antfin’s stake will dip to 13.5 percent, signalling a significant shift in the power balance.

The agreement’s dynamics are equally noteworthy. According to the specifics, Resilient will acquire both ownership and voting rights for the 10.3 percent stake. As part of the deal, Antfin will receive Optionally Convertible Debentures (OCDs) from Resilient, allowing it to maintain the economic value of the stake. This strategic step underlines Antfin’s unwavering confidence in Paytm’s potential.

The Deal Key Highlights-

A key highlight is that the transaction involves no cash exchange. Additionally, no pledges, guarantees, or value assurances are offered by Sharma, whether directly or indirectly. This speaks to the robust nature of the deal, driven by a strategic vision.

As of August 4, the estimated value of the 10.3 percent stake stands at a staggering $628 million, based on the stock’s closing price. This numerical backdrop underscores the significance of the move and its potential impact on the fintech arena.

Paytm’s performance

Payments firm Paytm reported a 39.4 percent growth in revenue at Rs 2,341 crore for the June quarter (Q1), even as the company narrowed its losses by 45 percent to Rs 358 crore in Q1 from Rs 645 crore it had reported during the same period of last financial year.

The company saw its revenue from payments business go up by 31 percent during the quarter to Rs 1,414 crore. The net payment margin was up 69% year-on-year to Rs 648 crore.

 

Source- moneycontrol.com, BSE filing

Disclaimer- Investments in the securities market are subject to market risk, read all related documents carefully before investing. This is for pure information purpose only and is not a recommendation, advise to invest. Broking services offered by Bajaj Broking | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Broking,1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014| CIN: U67120PN2010PLC136026| SEBI Registration No.: INZ000218931 | BSE Cash/F&O (Member ID: 6706) | DP registration No : IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN – 163403|

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