Paytm chairman and chief executive Vijay Shekhar Sharma will become the biggest shareholder in the mobile payments company he founded after buying a 10.3% stake back from Chinese fintech giant Ant Financial.
Citing unnamed analysts, Reuters reported that the move is aimed at simplifying Paytm’s ownership structure amid broader concerns about Chinese ownership in Indian financial technology companies.
Sharma's additional stake in Paytm - valued at $628 million based on the company's closing share price on August 4 - will increase his shareholding to about 19.42%, while Ant Financial’s will reduce to 13.5%, the company said in a stock exchange filing.
The stake will be housed in Resilient Asset Management, which is based in the Netherlands and is owned outright by Sharma. Resilient will issue optionally convertible debentures (OCDs) to Antfin, allowing the Chinese company to retain the economic value of the stake.
“I am proud of Paytm's role as a true champion of made-in-India financial innovation, and our achievements in revolutionizing mobile payments and contributing to formal financial services inclusion in the country,” Sharma commented.
“As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years.”
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