Netherlands-based Antfin Holdings is gearing up to divest a 3.6% stake in fintech giant Paytm, according to the company’s recent filings. This move involves the sale of around 2.27 crore shares on August 25th.
Paytm Stake Sale Details
The sale, as per the company’s announcement, will be executed at INR 880 per share. This pricing slightly dips below the previous day’s closing value of INR 904.4.
Paytm Ownership Shift to Resilient Asset Management
Antfin has taken a significant step in transferring ownership of a 10.3% stake in Paytm. The recipient of this stake is Resilient Asset Management, a firm associated with Paytm’s founder, Vijay Shekhar Sharma. This transfer was carried out via an off-market transaction.
Ownership Structure Changes
In this exchange, Vijay Shekhar Sharma gains both ownership and voting rights associated with the stake. Meanwhile, Antfin preserves the stake’s economic rights using non-convertible debentures (NCDs).
Antfin’s Stake Reduction in Compliance with Regulations
Antfin, a subsidiary of Jack Ma’s Ant Group, had held a 23.79% stake in Paytm by the conclusion of the June 2023 quarter. However, it has been systematically decreasing its ownership in response to regulatory requirements. These stipulations, outlined by SEBI guidelines, prevent any “professionally managed” company from having a single stakeholder with more than a 25% share in the company.
The financial landscape is seeing notable shifts in the ownership structure of Paytm, with Antfin Holdings engaging in stake sales and transfers. As Antfin complies with regulatory norms and trims its stake, Paytm’s dynamics continue to evolve. The company’s performance in 2023 has garnered optimism, attracting attention from analysts and investors alike. With these developments, Paytm remains on a trajectory of growth and transformation.
