Paytm’s CEO, Vijay Shekhar Sharma, now holds approximately 24.3% of the voting rights in the company, according to Institutional Investor Advisory Services (IiAS), following the transfer of shares from Antfin. The equity holding of the family trust, coupled with the recent stake acquisition, has contributed to Sharma’s increased influence.
Vijay Shekhar Sharma Ownership Increase Through Strategic Stake Acquisition
Earlier this week, Paytm revealed that Sharma would secure a 10.3% stake in the company by acquiring 6.53 crore shares from Netherlands-based Antfin Holdings BV. This move raised Sharma’s overall ownership to 19.42%, according to the company’s announcement.
Vijay Shekhar Sharma Equity from Family Trust Augments Influence
IiAS emphasized that the 4.88% equity held by Sharma Family Trust (Axis Trustee Services) should be taken into account, strengthening Sharma’s position. The Indian proxy firm stated, “Vijay Shekhar Sharma will have influence over how the 4.88% equity held by the trust will vote on shareholder resolutions, giving him effective control of 24.3% of the voting rights.”
Positive Investor Sentiment Amidst Challenges
Despite challenges such as shareholder wealth erosion, cash burns, and absence of profitable growth, investors have remained optimistic about Paytm and Sharma’s leadership. The report noted that investors have continued to support Sharma’s vision and capability to drive the business, despite these hurdles.
Securing Leadership Role and Future Implications
Last year, Sharma secured shareholders’ approval to lead Paytm as its MD and CEO for the next five years. IiAS underlined Sharma’s pivotal role in the company’s stability and urged him to signal his continued control. The proxy firm emphasized the need for Sharma to provide investors with the assurance that he is the driving force behind Paytm’s operations.
Earlier this year, IiAS raised concerns about potential regulatory bypassing related to employee stock options (ESOPs) granted to Sharma. The proxy firm had urged the Securities and Exchange Board of India (SEBI) to investigate Sharma’s decision to transfer shares to a family trust while still maintaining promoter-like privileges.
