One 97 Communications Ltd, the parent company behind the digital payments giant Paytm, is drawing significant market attention today as Resilient Asset Management BV prepares to offload a substantial portion of its stake. The firm announced its intention to sell up to 4.98% of its shareholding in Paytm via a block deal, a move that is expected to see a large volume of shares change hands.
Details of the Block Deal Emerge
The proposed block deal involves approximately 1.92 crore shares of One 97 Communications. According to termsheets, these shares are expected to be transacted at a floor price of Rs 1,535.10 per share. This price represents a 2.9% discount compared to Paytm's closing price of Rs 1,580.20 per share on the National Stock Exchange (NSE) on Monday.
The total estimated value of this significant transaction stands at Rs 1,946 crore. Following the completion of the block deal, a 90-day lock-in period will apply to the shares involved, a common practice in such large-scale market movements.
Antfin's Underlying Economic Interest
The sale by Resilient Asset Management BV is being conducted under its existing Optionally Convertible Debenture (OCD) agreement with Antfin (Netherlands) Holding B.V. It's important to note that while Resilient is the seller, the economic value generated from this proposed sale will be retained by Antfin, as per the terms of their agreement.
This arrangement stems from August 2023, when Resilient had acquired a 10.20% stake in One 97 Communications from Antfin against debentures. At that time, it was established that the economic interest in these shares would continue to belong to Antfin.
Paytm, in a filing to stock exchanges, clarified that it is not a direct party to this transaction. The company also confirmed that this block deal will not result in any change to the direct shareholding of its founders, aiming to reassure investors about the company's core ownership structure.