Highlights
Resilient Asset Management B.V. Proposes Sale of Paytm Stake
Resilient Asset Management B.V., under the control of Vijay Shekhar Sharma, has decided to sell a stake of up to 4.98% in Paytm via a block market trade, as reported in a regulatory filing by One97 Communications. This transaction will take place under an existing Optionally Convertible Debenture (OCD) agreement with Antfin (Netherlands) Holding B.V.
Details of the Stake Sale
It is significant to note that while Resilient is responsible for executing the share sale, the economic benefits from this transaction will remain with Antfin, as specified in the OCD agreement. In August 2023, Resilient acquired approximately 10.20% of Paytm from Antfin through issued OCDs. Nevertheless, the economic rights associated with these shares have continued to belong to Antfin.
The planned transaction will not impact Vijay Shekhar Sharma’s direct ownership in Paytm. The company has made it clear that it is not involved in this transaction.
Purpose of the Sale
This announcement comes as Resilient aims to monetise part of the Paytm shares it holds under the existing arrangement with Antfin. The proposed block trade could encompass about 4.98% of Paytm’s total equity.
Background on Stake Acquisition
Earlier in 2023, Resilient obtained the stake from Antfin as part of a major restructuring involving Paytm. The arrangement was crafted through OCDs, enabling Antfin to maintain its economic interest in the acquired shares.
Additional Information
The latest announcement by Paytm does not disclose information on the proposed sale price, potential buyers, or the anticipated value of the block trade. The transaction will adhere to the terms stipulated in the existing OCD agreement between Resilient and Antfin.
Market Performance
At the close of today’s trading session, Paytm’s shares were priced at Rs 1580 each, leading to a total market capitalisation of Rs 1,01,312 crore (approximately $10.6 billion).