Vijay Shekhar Sharma, the founder and CEO of Paytm, has agreed to buy a 10.3% stake in the company from its largest shareholder, Antfin (Netherlands) Holding B.V. The deal is part of a broader effort by Sharma to simplify Paytm’s ownership structure and give the company greater control over its own destiny. The proceeds from the sale will be used to invest in Paytm’s growth and expansion plans.
Vijay Shekhar Sharma, the visionary founder and esteemed CEO of Paytm, has entered into a momentous agreement to acquire a substantial 10.3% stake in the company. The stake is currently held by Antfin (Netherlands) Holding B.V., the largest shareholder in Paytm, and comes with a staggering price tag of $628 million. This valuation is based on Paytm’s last recorded closing price of 796.6 rupees per share, underscoring the immense value of the deal.
The primary motivation behind this groundbreaking move is to streamline Paytm’s ownership structure and enhance its operational efficiency. Presently, Antfin commands a considerable 29.4% stake in Paytm, bestowing it with a position of significant influence. However, once this acquisition is complete, Antfin’s ownership will be reduced to 19.1%, allowing Paytm to chart its course with greater autonomy.
Vijay Shekhar Sharma expressed unbridled enthusiasm for the deal, recognizing it as an opportunity to reinforce the long-standing partnership between Paytm and Ant Financial. Furthermore, he lauded the acquisition for conferring increased control over Paytm’s destiny, enabling them to navigate the ever-evolving market landscape with agility and adaptability. Sharma has outlined ambitious plans for the proceeds from this sale, vowing to channel them strategically to fuel the company’s growth and expansion endeavors.
Of course, before the ink can dry on this transformative deal, it is subject to securing the requisite regulatory approvals. Anticipation is high, with the closing of the deal anticipated during the fourth quarter of 2023. Upon meeting all the necessary requirements and approvals, this acquisition will mark a pivotal moment in Paytm’s trajectory, setting the stage for new milestones and accomplishments.
