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Paytm Founder Sells Rs 4,895 Cr Stake
18 Aug
Summary
- Vijay Shekhar Sharma's entity plans a major stake sale.
- The deal involves up to 4.98% of Paytm's shares.
- The sale is a secondary transaction, proceeds go to seller.
Shares of Paytm's parent company, One 97 Communications, are expected to be a focal point this Tuesday. This attention stems from founder Vijay Shekhar Sharma's Resilient Asset Management BV intending to divest up to a 4.98% stake through a block deal. The sale's floor price is set at Rs 1,535.10 per share.
This significant transaction aims to sell approximately 3.19 crore shares, potentially totaling Rs 4,895 crore. A base offering of 1.92 crore shares, valued at Rs 2,949 crore, is planned, with an option to increase it by another 1.27 crore shares. This upsize could add Rs 1,946 crore to the deal.
The entirety of this transaction is secondary, ensuring that all proceeds go directly to Resilient Asset Management BV and not to Paytm. Goldman Sachs is managing this placement. Resilient Asset Management BV had previously acquired nearly 10.20% of Paytm's equity from Antfin, using optionally convertible debentures.
Paytm shares have seen recent fluctuations, gaining over 17% in the past month but dropping nearly 1% over the last week. The stock has recovered significantly from its March low, reaching a 52-week high of Rs 1,657.60. Despite this, it remains below its initial IPO price from 2021, with a current market capitalization exceeding Rs 1.01 lakh crore.
