Resilient Asset Management B.V., owned by Paytm founder Vijay Shekhar Sharma, plans to sell shares worth up to ₹4,895 crore ($513 million) in One 97 Communications Ltd. The sale is set for Tuesday and includes a base offering of 19.2 million shares, or 3% of the company's total equity, valued at ₹2,949 crore ($309 million). An additional 12.7 million shares, representing a 1.98% stake, may also be sold, valued at ₹1,946 crore ($204 million), according to deal documents reviewed by Mint.
Key Details
This stake sale follows a recent rise in Paytm's stock, which hit a 54-month high last week. The stock has increased over 70% since March, pushing the company's market value above ₹1 lakh crore. The latest closing price was ₹1,502 per share. This values the proposed 4.98% stake sale at about ₹5,040 crore, based on Mint calculations. Resilient acquired its stake from Ant Group's affiliate Antfin in August 2023 through a non-cash deal involving an optionally convertible debenture.
Background
Paytm stated that it is not involved in the transaction and that there will be no change in the Sharmas' direct shareholding. Antfin has been reducing its stake in Paytm amid regulatory scrutiny and plans to fully exit the company by August 2025. Meanwhile, mutual funds have increased their holdings in Paytm, owning 18% of the company as of the end of the June quarter.
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The stake sale could affect Paytm's stock price, as it may indicate confidence in the company's growth amid a strong market rally. Investors will monitor further developments regarding mutual fund activity and any updates on regulatory issues affecting Antfin's previous holdings.
Based on reporting by: livemint.com