New Delhi: Shares of fintech firm One97 Communications jumped over 11 per cent in morning trade on Monday, following news that its founder and CEO Vijay Shekhar Sharma will acquire 10.30 per cent stake in Paytm from Antfin (Netherlands) Holding BV, through an off-market transfer in a no-cash deal.
The stock of Paytm's parent firm zoomed 11.57 per cent to Rs 887.55 on the BSE.
At the NSE, it jumped 11.43 per cent to Rs 887.70 apiece.
Antfin will continue to hold the economic rights of the stake that is being transferred to Sharma.
As per the deal, Sharma will purchase 10.3 per cent shareholding in Paytm from Antfin through his 100 per cent owned overseas entity -- Resilient Asset Management BV.
Resilient Asset in return will issue debt instrument OCDs (optionally convertible debentures) to Antfin.
"Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise," a BSE filing said.
Pursuant to this transaction, there would be no change in the management or control of Paytm, since Sharma would continue as Managing Director and CEO, and the existing board would continue as it is.
Further, there is no nominee of Antfin on the board of Paytm. Antfin is an affiliate of China's Ant Group Co.
