Friday, May 24

Vijay Shekhar Sharma Acquires 10.3% Stake in Paytm from Antfin; Stock Soars 11%

Vijay Shekhar Sharma Acquires 10.3% Stake in Paytm from Antfin; Stock Soars 11%

Vijay Shekhar Sharma, founder of Paytm, will acquire 10.30% stake in the company from Antfin (Netherlands) Holding BV. Antfin transferred Paytm’s Rs 6.53 crore to Resilient Asset Management B.V., Sharma owns 100% of the total equity stake in the enterprise.

The document stated that under the agreement, Resilient Asset Management BV will provide OKB to AntFin in exchange for the transfer and maintain their market value. Paytm also claimed that new members will benefit the company.

With the deal, Sharma’s fair and indirect stake in Paytm will rise to 19.42%, while Antfin’s stake will fall to 13.5%. The change will be made through barter change. Paytm said in a statement that it expects to benefit from the new membership.

The company’s stock rose as much as 11.44% on the day, posting its biggest gain since Feb. The stock rose 7.06% to Rs 852.At 9.38am NSE Nifty 50 was up 0.14%, or 70% per share. Last year, the stock was up 60.24%.Total volume is 13 times the 30-day average volume. According to Bloomberg data, the relative strength index is 58.26 .
11 out of 13 analysts reviewing the company have a “buy” rating, while two recommend a “hold” rating. 12-month average analyst price target points to a potential increase of 27.8%.

According to a BSE filing, Paytm’s parent company, One97 Communications, said Monday that “Vijay Shekhar Sharma (Company Founder, Director and CEO) and Antfin (Netherlands) Holding BV (“Antfin”) entered Antfin and found 65,335,101 To a location where the company is 100% owned by Sharma – Resilient Asset Management B.V. (“Business”).
This means the transfer of 10.30% of the company’s (Company/Paytm) capital”.

Also read:- Zomato’s Shares Surge Over INR 100, Smashing Another 52-Week Record High.

The document stated that no cash payments will be made for the purchase and no commitment, warranty or other assurance of value will be given by Sharma directly or otherwise.

The company added that under the deal, there will be no changes in the management or control of Paytm, while Sharma will remain as president and operating director, and current executives will remain in place.

After the deal was finalized, Sharma tweeted: “I am proud of Paytm’s role as a true champion of financial innovation in India and we have succeeded. We are proud to contribute to the mobile payments revolution and participation of financial services in India. In announcing this change of ownership, Ant I would like to thank Financial for their continued support and cooperation over the past few years.”

In a Paytm filing, it was stated that Resilient Asset Management BV will announce Antfin’s convertible debt (OCD) option for flexibility and cost savings.
Optional convertible bonds are debt securities that allow the issuer to raise capital in exchange for paying interest to investors until maturity.

Antfin is no longer Paytm’s largest shareholder, with its stake reduced to 13.5%. Following the transaction, Vijay Shekhar Sharma’s stake in the company will increase to 19.42%.
Paytm shares have gained nearly 50% so far this year.
This comes after a 13 percent correction from a 52-week high of Rs 914. The stock rebounded after falling to an all-time low of Rs 438, which is roughly 80% below its Rs 2,150 IPO price.

According to Trendlyne data, the share’s average price target is Rs 1,036, which represents a potential increase of 22% from the current market price. The consensus among 13 analysts on the stock is to buy.

 

Recently, the fintech company announced that its average monthly users have increased 19% year over year to Rs 9.3 crores. According to BSE data, Paytm has 8.2 million registered merchants and added 4.1 million new accounts during the year.

Paytm said that in July 2023, the company’s merchant list increased by 400,000.

Also Paytm claimed to have made 4.3 million loans in July of this year, raising the total amount of loans granted in the month to Rs 5,194 crore, an increase of 148% year on year.
Vendor paid volume or Gross Product (GMV) increased 39% year-on-year to Rs 1.47 billion.

Fintech platform reported- a net loss of Rs 358.4 crore in the June quarter of the 24 fiscal year.

Also read:- The Journey of Vijay Shekhar Sharma – Founder of Paytm

 

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