New Delhi: Paytm founder Vijay Shekhar Sharma-owned Resilient Asset Management plans to sell up to a 4.98 per cent stake in One97 Communications, the parent company of Paytm, through a block market trade.
The proposed transaction was disclosed in an exchange filing. However, the money received from the stake sale will be retained by Antfin (Netherlands) Holding B.V. under an existing agreement between Antfin and Resilient.
Block Deal Planned
According to the filing, Resilient has informed One97 Communications about its plan to sell up to 4.98 per cent of the company’s shares through a block market trade.
The transaction is linked to an existing Optionally Convertible Debenture (OCD) agreement between Resilient and Antfin.
Under this arrangement, the economic value received by Resilient from the proposed share sale will be retained by Antfin.
Earlier Antfin Deal
Antfin, part of China’s Alibaba group, had earlier transferred its 10.3 per cent direct holding in One97 Communications to Resilient Asset Management.
The transaction valued the stake at around $628 million. While the shares were transferred to Resilient, Antfin continued to hold economic rights linked to the stake under the OCD arrangement.
The earlier transaction was carried out at around ₹795 per share.
That price was significantly below Paytm’s IPO issue price of ₹2,150 per share.
Shares Nearly Double
Since the Antfin-Resilient transaction, Paytm shares have recorded a strong recovery.
One97 Communications shares closed at ₹1,583 apiece on the BSE on Monday. At this level, the stock has gained almost 99 per cent compared with the ₹795-per-share price of the earlier Antfin transaction.
The proposed 4.98 per cent block trade will reduce Resilient’s holding in One97 Communications while allowing Antfin to receive the economic value from the transaction under their existing agreement.
