Paytm Share Price: Paytm's stock rose up to 11 percent, this became the reason for the rise in the stock
Paytm Share Price: Paytm's stock has seen a jump of 11 percent. The reason behind this is the acquisition of a 10.3 percent stake in Paytm from Antfin by CEO Vijay Shekhar Sharma. This is a noncash deal. Paytm management will not be affected by this deal. Sharma will continue to be the CEO of the company.
Shares of One97 Communications, the company that operates the fintech platform Paytm, saw a jump of up to 11 percent on Monday. The reason behind this was the acquisition of a 10.30 percent stake in Paytm held by Antfin (Netherlands) on behalf of the company's founder and CEO Vijay Shekhar Sharma. It is an off-market transfer and non-cash deal.
Paytm shares opened higher by 11.43 percent at 887.70 on the NSE after the news broke. At the same time, the stock started at Rs 887.55 on BSE with a gain of 11.57 percent. However, the stock could not maintain its gains and was trading at 848.70, up 6.54 percent by 12 noon. The stock touched a high of 887.70 and a low of 844.55 during the trading session so far.
Under this deal, Sharma will buy a 10.3 percent stake held by Antfin and in return, OCDs will be issued by the company to Antfin. However, Antfin will still retain its economic rights.
In the information given by the company to BSE, it was said that no payment will be made in cash for this acquisition, nor any guarantee, mortgage, or any other promise has been made by the company.
There will be no impact of this deal on the management. Vijay Shekhar Sharma will continue to be the MD & CEO of the company and there will be no change in the board of the company. Also, none of Antfin's nominees will be on the board of the company. Antfin is a subsidiary of the Chinese company Ant Group Company.