Vijay Shekhar Sharma Becomes Paytm Significant Beneficial Owner After Antfin Reduces Stake

Paytm’s Trouble Continues As Govt Defers Investment In Paytm Payment Services; Co Denies Report

SUMMARY

Antfin’s shareholding in Paytm has reduced from 23.79% to 9.90% of the total equity share capital after recent offloads

Resilient Asset Management, wholly owned by Vijay Shekhar Sharma, now holds a 10.3% stake in Paytm, taking his total shareholding to 19.42%

Antfin recently sold a 3.6% stake, around 2.27 Cr equity shares of Paytm, through open market transactions for INR 2,037 Cr

Paytm founder and CEO Vijay Shekhar Sharma has emerged as the significant beneficial owner (SBO) of the fintech giant after Antfin reduced its stake last month.

In a regulatory filing, Paytm disclosed that Antfin had reduced its ownership from 23.79% to 9.90%. “Accordingly, no person affiliated with Antfin will qualify as a Significant Beneficial Owner (“SBO”) of the Company,” Paytm said.

Simultaneously, the company also informed the bourses that Sharma’s Resilient Asset Management, now holds a 10.3% stake in Paytm, elevating his overall shareholding (direct and indirect) to 19.42% and thus making him the company’s only SBO.

This shift comes as China’s Ant Group has been reducing its stake in the fintech giant over the past few months. The Netherlands-based Antfin is an affiliate of the Chinese conglomerate, and so is the Alibaba Group.

Antfin recently sold a 3.6% stake through open market transactions for INR 2,037 Cr. The company sold 2.27 Cr shares of One97 Communications, the parent of Paytm, for INR 895.2 per share, as per bulk and block deal data of the BSE.

Earlier in February, Alibaba.Com Singapore E-Commerce Private Limited, another affiliate of Ant Group, exited Paytm by selling a 3.31% stake. In the same month, Ant Group’s senior vice-president Douglas Feagin also resigned from the Paytm board.

Paytm’s net loss declined nearly 45% year-on-year to INR 358 Cr in the quarter ended June 2023. Operating revenue surged 39% to INR 2,342 Cr on strong growth in payments and lending business.

Several brokerages, including Goldman Sachs, Citi, and CLSA, gave a thumbs up to the company’s Q1 performance and a ‘Buy’ rating to the stock. They have also increased their target price. During the early hours of trading on Monday (September 4), Paytm’s shares were trading at INR 860 apiece, slightly higher than the last close and nearly 62% higher year to date.