Shares of a new-age stock gained nearly 4 percent to hit a fresh 52-week high of ₹ 939.00 apiece on the Bombay Stock Exchange (BSE) amid a block deal buzz and hopes of inclusion in the MSCI index. Its shares settled at ₹ 899.30 apiece on Friday.
Around 2.3 crore shares or a 3.6 percent stake of One 97 Communications (Paytm) changed hands in block deals. However, the details of the buyers and sellers could not be ascertained immediately. 2,30,50,230 shares changed hands on the BSE, while 78,01,009 shares changed hands on the NSE.
On August 24, 2023, reports suggested that Antfin, the Chinese fintech giant, was poised to conduct a block deal on August 25, potentially selling 2.3 crore shares or a 3.6 percent stake in Paytm. The anticipated floor price of the deal was expected to be set at a discounted rate of ₹ 880.10 per share.
Earlier this month, Paytm’s CEO Vijay Shekhar Sharma-owned overseas entity Resilient bought a 10.3 percent stake in the digital payments company from Antfin. With that acquisition, he became the largest shareholder Paytm, with a holding of 19.42 percent, as Resilient is Wholly-owned by him.
According to laws, 10 per cent is a crucial threshold limit for determining the significant beneficial owner (SBO) of a company. Therefore Vijay Shekhar Sharma became an SBO of Paytm. Experts believe that this deal will make it easier for Paytm to procure regulatory approvals for its expansion plans.
Reports suggest that he is looking to simplify the ownership structure amid broader concerns about Chinese ownership in Indian financial technology companies. According to a report by Money Control, the government and the Reserve Bank of India have also expressed concerns regarding the large Chinese shareholding in Paytm.
Meanwhile, other shareholders like SoftBank have been selling their stake in the company. Earlier this year, the Alibaba Group also sold its remaining stake in Paytm for ₹ 1,378 crores. Moreover, SVF India Holdings (Cayman) Ltd, an affiliate of SoftBank, sold 13.10 million shares or a 2.07 percent stake, for around $120 million.
Written by Simran Bafna
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