Paytm clarifies founder Vijay Shekhar Sharma not divesting his direct shareholding

Representational Image. File pic.

Paytm Founder and Chief Executive Vijay Shekhar Sharma will not gain financially from the proposed sale of a 4.98 per cent stake in One97 Communications Ltd (Paytm) undertaken by investment vehicle, Resilient Asset Management BV, with the proceeds going to Antfin.

Additionally, Sharma's roughly 9 per cent direct stake in Paytm will remain unchanged, underscoring the founder's continued commitment to the company. Paytm said it is not a party to the proposed sale, and that "there will be no change in the founder's (Sharma's) direct shareholding", as part of its exchange filing late Monday evening.

The proposed block market trade will be executed under an existing optionally convertible debenture agreement between Resilient and Antfin.

Resilient, an entity completely owned by Sharma, will carry out the sale, but the economic value from the transaction will be fully retained by Antfin under the terms of that agreement.

The arrangement dates back to August 2023, when Resilient acquired approximately 10.2 per cent of Paytm's equity from Antfin, issuing optionally convertible debentures to Antfin as consideration.

The economic interest in those shares has rested with Antfin since then, even as Resilient held legal and voting rights.

Earlier this month, brokerage firm Bernstein raised its target price on Paytm to Rs 2,200 from Rs 1,500, citing potential income from a UPI merchant discount rate and becoming the first brokerage to set a target above Paytm's Rs 2,150 IPO price since its 2021 listing.

The development comes as Paytm's profitability continues to strengthen. One 97 Communications reported a full-year profit after tax of Rs 552 crore for FY26, with revenue rising 22 per cent to Rs 8,437 crore, marking its first full year of profitability since its 2021 listing.