Paytm Founder Vijay Shekhar Sharma to purchase 10.3% stake from Antfin

Vijay Shekhar Sharma, the founder of Paytm, is set to acquire a 10.30% stake in the company from Antfin (Netherlands) Holding BV. As part of the deal, Antfin will transfer 6.53 crore shares of Paytm to Resilient Asset Management B.V., an entity wholly owned by Sharma himself. 

Following the transaction, Sharma’s ownership in the company will rise to 19.42%, whereas Antfin’s stake will decrease to 13.5%. 

According to a BSE filing, Paytm’s parent company, One97 Communications, announced on August 7, 2023, that Vijay Shekhar Sharma, the Founder, Managing Director, and CEO of the company, has reached an agreement with Antfin (Netherlands) Holding B.V. (“Antfin”) for the transfer of 65,335,101 shares of Paytm to Resilient Asset Management B.V., an entity wholly owned by Sharma. This transaction will entail a transfer of 10.30% of the company’s share capital. 

As a result of this deal, Antfin, which is affiliated with China’s Ant Group Company, will no longer retain its position as the largest shareholder in Paytm. 

Today, after the announcement of this news, the shares of Paytm surged by approximately 11%. The stock started the day at Rs 860.55, representing an 8% increase from its previous day’s closing price of Rs 795.45 per share on the BSE. During the intraday session, it reached intraday highs and lows of Rs 887.55 and Rs 844.35, respectively. 

Upon analysing today’s share volumes, it is evident that there has been a substantial increase of more than 1.60 times in volumes than its normal trading volumes on the BSE. As of the current moment, while writing this article, the shares of the company are up by Rs 53.55, which is Rs 849 on the BSE. 

If we check the stock performance then, the stock has displayed remarkable performance in recent times, delivering a 23% return in the last three months and an impressive 44% return in the six months.   

On July 3, the company posted its June quarter results, revenue from operations experienced an increase of 48% YoY, going from Rs 1245 crore to Rs 1845 crore. The operating loss of the company decreased from Rs 632 crore to Rs 296 crore. 

Whereas the net loss of the company amounts to Rs 333 crore against the loss of Rs 628 Crore in the June quarter last year. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.