Sharma Won’t Gain From Proposed 4.98% Sale
Key Highlights
- Vijay Shekhar Sharma is not selling his roughly 9 per cent direct stake in Paytm.
- Resilient Asset Management BV proposes to sell a 4.98 per cent stake in One97 Communications.
- Sharma will not receive the economic proceeds from the proposed transaction.
- The economic value of the sale will be retained by Antfin under an existing agreement.
- Paytm said it is not a party to the proposed stake sale.
- Resilient is wholly owned by Sharma but holds the shares under an arrangement dating to August 2023.
- Bernstein recently raised its Paytm target price to ₹2,200 from ₹1,500.
- Paytm reported a ₹552 crore profit after tax for FY26.
- FY26 revenue increased 22 per cent to ₹8,437 crore, marking Paytm’s first full year of profitability since listing.
News Story
New Delhi, August 18: Paytm founder and Chief Executive Vijay Shekhar Sharma will not receive any financial benefit from the proposed sale of a 4.98 per cent stake in One97 Communications Ltd by Resilient Asset Management BV, while his direct shareholding in the fintech company will remain unchanged.
The proceeds from the proposed transaction will economically accrue to Antfin under an existing optionally convertible debenture arrangement, according to details disclosed by Paytm.
Sharma directly owns roughly 9 per cent of Paytm, and that holding will remain unchanged following the proposed transaction.
Paytm not party to proposed sale
In an exchange filing late Monday, Paytm said the company itself is not a party to the proposed transaction.
It also clarified that there would be no change in Sharma’s direct shareholding as a result of the deal.
The proposed sale involves Resilient Asset Management BV, an entity wholly owned by Sharma, selling a 4.98 per cent stake in One97 Communications through a block market transaction.
While Resilient will execute the sale, Sharma will not receive its economic proceeds.
Antfin to retain economic value
The transaction is being undertaken under an existing optionally convertible debenture agreement between Resilient and Antfin.
The arrangement dates back to August 2023, when Resilient acquired approximately 10.2 per cent of Paytm’s equity from Antfin.
As consideration for those shares, Resilient issued optionally convertible debentures to Antfin.
Under the arrangement, the economic interest in those shares continued to rest with Antfin even though Resilient held the legal ownership and voting rights.
As a result, the economic value generated through the proposed 4.98 per cent stake sale will be fully retained by Antfin under the terms of the agreement.
Sharma’s direct holding remains unchanged
The proposed transaction does not involve Sharma’s approximately 9 per cent direct shareholding in Paytm.
The clarification is significant because the sale by a Sharma-owned investment vehicle could otherwise be interpreted as a reduction in the founder’s personal economic commitment to the company.
Paytm’s disclosure distinguishes between Sharma’s direct shareholding and the shares held by Resilient under its existing financial arrangement with Antfin.
Bernstein raises Paytm target
The development comes shortly after brokerage firm Bernstein raised its target price for Paytm to ₹2,200 from ₹1,500.
The revised target surpassed Paytm’s ₹2,150 initial public offering price and was linked partly to the potential for additional income from a UPI merchant discount rate.
Paytm listed on the stock exchanges in 2021.
Paytm reports first full-year profit
The stake-sale development also comes as Paytm’s financial performance continues to improve.
One97 Communications reported a profit after tax of ₹552 crore for FY26, marking its first full financial year of profitability since its stock market listing.
Revenue for the year increased 22 per cent to ₹8,437 crore.
The improvement in profitability represents an important milestone for the fintech company as it continues to expand its payments and financial-services businesses while focusing on sustainable earnings.
