Paytm said Resilient Asset Management BV has proposed to sell up to 4.98% of its shareholding through a block market trade
The economic value from the transaction will be retained by Antfin under the existing OCD agreement
About 3% of Paytm's equity, worth about ₹2,950 crore, has reportedly changed hands so far
Paytm Shares Fall As Vijay Shekhar Sharma-Linked Resilient Proposes Up To 4.98% Stake Sale
One 97 Communications said that it was not a party to the transaction and that founder Vijay Shekhar Sharma's direct shareholding in Paytm would remain unchanged
Vijay Shekhar Sharma, Founder, Paytm
Summary
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One 97 Communications, the parent company of Paytm, said Resilient Asset Management BV has proposed a block market trade to sell up to 4.98% of the company's shareholding under its existing Optionally Convertible Debenture (OCD) agreement with Antfin (Netherlands) Holding BV.
The company said the economic value received by Resilient from the proposed share sale would be retained by Antfin under the existing OCD agreement.
In a regulatory filing on August 17, One 97 Communications said that it was not a party to the transaction and that founder Vijay Shekhar Sharma's direct shareholding in Paytm would remain unchanged.
Resilient had acquired an approximately 10.20% stake in One 97 Communications from Antfin against OCDs issued to Antfin, as disclosed in August 2023. However, the economic interest in the shares continued to belong to Antfin, according to the company's filing.
At the end of the June quarter, Resilient held a 10.2% stake in One 97 Communications, while Sharma held 9.03% in his individual capacity, as per a report by CNBC-TV18.
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The shares of One 97 Communications fell down to ₹1561.50 apiece as of 10 am on the National Stock Exchange (NSE).
3% Stake Sale Completed So Far
Around 1.92 crore shares, representing about 3% of One 97 Communications' equity, have changed hands in the block deal window on August 18, as per CNBC-TV18. The transaction was valued at approximately ₹2,950 crore.
The identities of the buyers and sellers in the completed transaction were not immediately known, the report said.
According to CNBC-TV18, the proposed Resilient-Antfin transaction had a base offer of 3% of the company's equity, or around 1.92 crore shares, along with an upsize option of 1.98%. The floor price was set at ₹1,535.10 per share.
If the entire upsize option was exercised for 4.98% stake, the sale's potential value can be around ₹4,895 crore, as per a report by The Economic Times (ET).
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The term sheet also included a 90-day lock-up on further share sales by the seller, while Goldman Sachs (India) Securities Private Limited acted as the placement agent, as per ET.