Discover the latest fintech news as Paytm's Founder and CEO, Vijay Shekhar Sharma, acquires a significant 10.30% stake in the company, resulting in a remarkable shift in the ownership structure.

In a significant development for the fintech industry, One 97 Communications Ltd (Paytm) witnessed a remarkable surge in its share prices as Founder and CEO Vijay Shekhar Sharma acquired a 10.30% stake in the company through his overseas entity, Resilient Asset Management B.V. The agreement with Antfin (Netherlands) Holding BV resulted in a shift in the ownership structure, with Antfin ceasing to be the largest shareholder.

The stake purchase propelled Vijay Shekhar Sharma's shareholding in Paytm to 19.42% directly and indirectly, while Antfin's shareholding was reduced to 13.5%. This off-market transfer is set to benefit Paytm and its growth prospects, according to a press release issued by the company.

Resilient Asset Management B.V. will acquire ownership and voting rights of the 10.30% stake by issuing Optionally Convertible Debentures (OCDs) to Antfin, allowing the latter to retain economic value in the stake. Remarkably, this acquisition will involve no cash payment or any pledge, guarantee, or value assurance by Mr. Sharma, either directly or indirectly.

Despite the change in ownership structure, there will be no alteration in Paytm's management or control. Vijay Shekhar Sharma will continue to serve as the Managing Director and CEO, and the existing Board will remain unchanged.

In response to the transaction, Paytm clarified to BSE that the company itself is not a party to the deal, and the ownership transfer will have no impact on the management or control of Paytm. The company asserted that it remains professionally managed, with no identifiable promoter.

Vijay Shekhar Sharma expressed his pride in Paytm's role as a pioneer in Indian financial innovation and its contributions to revolutionizing mobile payments and promoting financial inclusion. He also conveyed his gratitude to Antfin for their steadfast support and partnership over the years.

Following this development, Paytm's stock experienced an 11.57% surge, reaching a high of Rs 887.55 on BSE. The acquisition is expected to usher in new growth opportunities for Paytm, further solidifying its position as a leading force in the fintech landscape.

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