Paytm Founder Vijay Shekhar Sharma Acquires 10.3% Stake from Ant Financial
Vijay Shekhar Sharma, the founder and chief executive of Indian financial services firm Paytm, has entered into a deal with Ant Financial to acquire a 10.3% stake in the company. The move seems to be aimed at limiting Paytm’s exposure to the Chinese company.
Sharma’s firm, Resilient Asset Management, will be acquiring the stake from Ant Financial. The deal is being executed at Paytm’s share closing price on August 4th, making the 10.3% stake worth $628 million. This transaction is being carried out off-market, with neither Sharma nor Resilient making any cash payments.
Paytm’s shares surged over 6.5% upon the announcement of the deal. Following the transaction, Sharma’s stake in Paytm will increase to 19.42%, while Ant Financial’s shareholding will be reduced to 13.5%.
The deal comes after a turnaround for Paytm, which had a lackluster listing but has significantly improved its finances in recent quarters. The acquisition will allow Ant Financial to retain the economic value of the 10.3% stake through the issuance of optionally convertible debentures by Resilient.
“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,” Sharma said in a statement. He also expressed his gratitude to Ant Financial for their support and partnership over the years.
Paytm’s deal with Ant Financial highlights the company’s efforts to reduce its reliance on the Chinese conglomerate and strengthen its position in the Indian financial market. With the continued growth of Paytm and its strategic acquisitions, it is poised to further revolutionize the industry and contribute to India’s financial services sector.