Antfin, the second largest shareholder in Paytm with a stake of 9.85 percent earlier, sought to offload 4 percent in the fintech at a floor price at Rs 809.75 apiece, with a deal valued at Rs 2,200 crore at the floor price.
Shares of mobile services and digital payment platform Paytm tumbled nearly 3 percent on May 13 after a large block of 1.7 crore shares (4.1 percent of equity) reportedly took place, with Alibaba Group’s subsidiary Antfin being the likely seller.
Antfin, the second largest shareholder in One 97 Communications with a stake of 9.85 percent, sought to offload 4 percent stake in fintech, according to the term sheet of the bulk deal seen by Moneycontrol. The company had set the floor price at Rs 809.75 apiece, marking a 6 percent discount from the previous close. The deal is reported valued at around Rs 2,200 crore at the floor price.
After Antfin trimming stake, Paytm founder Vijay Shekhar Sharma directly owns 9.05 percent stake in the company, and indirectly owns another 10.24 percent through a foreign entity called Resilient Asset Management.
Resilient had acquired 10.3 percent stake in Paytm from Antfin, making the founder the largest shareholder in the company. The deal was done through issuance of Optionally Convertible Debentures and had no cash consideration. At the time of the deal, Paytm was trading at around Rs 850-890 per share.
Paytm shares tumbled further to hit an intraday low of Rs 830.55 apiece on May 13. but later recovered, though still lower than the floor price offered by Antfin.
Source: www.moneycontrol.com