Understanding Ownership of Paytm: SoftBank's Involvement and More

Let's dive into the ownership of Paytm, a company that has gained significant traction in the Indian digital payments space. Paytm's parent company, One97 Communications, is majority-owned by its founder and CEO, Vijay Shekhar Sharma.

SoftBank, a Japanese multinational conglomerate, has a significant stake in One97 Communications, holding around 19% of the company's shares. This investment was made in 2015 as part of a $1.4 billion funding round.

Paytm's ownership structure is complex, with multiple investors holding stakes in the company. Alibaba Group, a Chinese e-commerce giant, is another major investor in Paytm, holding around 30% of the company's shares.

The company has also received investments from other notable investors, including SAIF Partners and Ant Financial.

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Vijay Shekhar Sharma is Paytm's largest shareholder and Significant Beneficial Owner.

As of December 2023, AntFin holds a 9.9 percent stake in Paytm. Sharma is still looking to increase his stake in the company further.

Sharma acquired a 10 percent stake from AntFin through his 100 percent-owned overseas entity Resilient Asset Management BV in August 2023, increasing his holding to 19.42 percent.

AntFin will continue to hold the economic rights of the stake that is being transferred to Sharma.

Sharma will purchase 10.3 percent shareholding in Paytm from AntFin through his 100 percent-owned overseas entity Resilient Asset Management BV.

Antfin's shareholding in Paytm will decline to 13.5 percent from 23.8 percent it held earlier.

Sharma held a little over 9 percent stake in Paytm before the deal.

The deal is a no-cash transaction, and Sharma will not provide any pledge, guarantee, or other value assurance for this acquisition.

The existing board of Paytm will continue as it is, and there will be no change in the management or control of the company.

Sharma will continue as Managing Director and CEO of Paytm.

One97 Communications, the parent company of Paytm, has a diverse group of shareholders. SAIF Advisors Ltd. holds the largest stake, with 15.36% of the shares.

The top shareholders in One97 Communications include SAIF Advisors Ltd., Resilient Asset Management BV, Antfin (Netherlands) Holding BV, Vijay Shekhar Sharma, and the Sharma Family.

Here is a breakdown of the top shareholders in One97 Communications:

The Board of Directors at One97 Communications is made up of seven members, all of whom bring a wealth of experience and expertise to the table.

Vijay Shekhar Sharma serves as the Chairman of the Board, a position he has held since December 21, 2000.

Ravi Chandra Adusumalli has been a Director/Board Member since September 24, 2020.

Pallavi Shardul Shroff joined the Board on February 7, 2021.

Ashit Ranjit Lilani also joined the Board on July 4, 2021.

Madhur Deora became a Director/Board Member on May 19, 2022.

Gopalasamudram S. Sundararajan joined the Board on August 28, 2022.

Rajeev K. Agarwal is the newest addition to the Board, joining on June 16, 2024.

Here is the list of Board of Directors at One97 Communications:

One97 Communications is a company with a diverse group of shareholders. The largest shareholder is SAIF Advisors Ltd., holding 15.36% of the company's equities.

SAIF Advisors Ltd. has a significant stake in the company, with 97,915,967 shares. This is a substantial holding, and it's likely that they have a significant influence on the company's decisions.

Resilient Asset Management BV is another major shareholder, holding 10.25% of the company's equities. They own 65,335,101 shares, which is a substantial portion of the company.

Antfin (Netherlands) Holding BV and Vijay Shekhar Sharma are also significant shareholders, holding 9.85% and 9.073% of the company's equities, respectively. Sharma Family holds 4.858% of the company's equities.

Here's a breakdown of the top shareholders:

Paytm's share price has seen significant fluctuations, surging over 11% in early trade on Monday after a major announcement.

The company's founder, Vijay Shekhar Sharma, will purchase a 10.30% stake in Paytm from Antfin (Netherlands) Holding BV. This move is expected to impact the company's ownership structure.

Paytm shares rallied as much as 11.57% to ₹887.55 apiece on the BSE.

SoftBank initially acquired a significant 18.5% holding in Paytm during the company's initial public offering in 2021.

SoftBank's stake in Paytm has gradually dwindled since November 2022 through a series of open-market transactions.

As of the conclusion of the quarter ending on March 31, 2024, SoftBank's ownership in Paytm had dwindled to approximately 1.4%.

SoftBank has fully exited One97 Communication, Paytm's parent firm, after selling its remaining 1.4% stake.

SoftBank's chairman is entrepreneur Masayoshi Son.

Vijay Shekhar Sharma is Paytm's largest shareholder and Significant Beneficial Owner.

He acquired a 10 percent stake from AntFin in August 2023 through his 100 percent-owned overseas entity Resilient Asset Management BV, increasing his holding to 19.42 percent.

Sharma is still looking to increase his stake in the company further, as he told Bloomberg News in an interview in September 2023 that there is never a day he wouldn't buy more equity in Paytm.

As of December 2023, AntFin holds a 9.9 percent stake in Paytm.

Sharma will purchase 10.3 percent shareholding in Paytm from AntFin through his 100 percent-owned overseas entity Resilient Asset Management BV, making him the largest shareholder in the company with a total stake of 19.42 percent.

With this deal, shareholding of AntFin will decline to 13.5 percent in Paytm from 23.8 percent it held earlier.

Sharma will continue as Managing Director and CEO of Paytm, and the existing board will continue as it is, with no change in the management or control of the company.