Paytm's Sharma won't gain financially from proposed 4.98% Resilient stake sale; value to go to Antfin

Paytm Founder and Chief Executive Vijay Shekhar Sharma will not gain financially from the proposed sale of a 4.98% stake in One97 Communications Ltd undertaken by investment vehicle, Resilient Asset Management BV.

Resilient Asset Management BV has proposed to undertake a block market trade to sell up to 4.98% stake in One 97 Communications Ltd, the parent company of Paytm, under its existing Optionally Convertible Debenture (OCD) agreement with Antfin (Netherlands) Holding BV.

Paytm informed the stock exchanges late Monday evening that the economic value received by Resilient from the proposed sale will be retained by Antfin under the OCD agreement.

Resilient had acquired an approximately 10.20% equity stake in Paytm from Antfin against OCDs issued to Antfin, as disclosed on August 7, 2023. However, the economic interest in those shares has rested with Antfin since then, even as Resilient held legal and voting rights.

"The Company has been informed by Resilient... that it proposes to undertake a 'Block Market Trade' to sell up to 4.98% shareholding" in Paytm, the company said in a regulatory filing.

Sharma's roughly 9% direct stake in Paytm will remain unchanged.

Paytm said it is not a party to the proposed sale, and that "there will be no change in the founder's (Sharma's) direct shareholding".

Resilient, an entity completely owned by Sharma, will carry out the sale, but the economic value from the transaction will be fully retained by Antfin under the terms of that agreement.

One 97 Communications reported a full-year profit after tax of ₹552 crore for FY26, with revenue rising 22% to ₹8,437 crore, marking its first full year of profitability since its 2021 listing.

Paytm's revenue for April-June jumped 28% YoY and 8% QoQ to ₹2,448 crore, while EBITDA, or operating profit, came in at ₹203 crore, up 182% YoY and 54% QoQ.

The company's profit after tax (PAT) came in at ₹220 crore, up 79% YoY.