Sharma who co-founded Paytm in August 2010 is now holding the company with a 19.3 percent stake in the company.
Fintech company One97 Communications founder and CEO Vijay Shekhar Sharma will acquire an 10.30 percent share of Paytm via Antfin Holding BV via an off-market transfer, through a cash-free deal.
The deal transforms One97 Communications, which operates under the Paytm trademark, to an Indian-owned majority company instead of being owned by Chinese companies.
Antfin will keep the rights to the business of the stake, which will be transfered to Sharma.
In the terms of the deal, Sharma will purchase 10.3 percent stake of Paytm through Antfin via his 100% owned foreign company,
Resilient Asset Management BV which makes him the biggest shareholder of the company, with a stake of 19.42 percent.
Sharma had a small 9 per cent of Paytm prior to the acquisition.
Resilient Asset in exchange will issue OCDs, a debt instrument, (optionally convertible debentures) to Antfin.
"Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or
Other value assurance be provided by Sharma, directly or otherwise," an BSE announcement said.
In this arrangement, the Antfin's shareholding Antfin will decrease to 13.5 percent within Paytm from 23.8 percent that it held in the past.
As a result of this transaction it is not expected to be a changes in the management or control of Paytm due to the fact that Sharma remains as the CEO and Managing Director,
And the board of directors will continue to function in the same way as it currently is.
Additionally, there isn't a nominee from Antfin as a member of the Board at Paytm. Antfin has an affiliation with the Chinese company Ant Group Co.
"As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years," Sharma stated.
When the Paytm launch, Antfin was holding 29.6 per percent of the stake. the company was obliged to reduce its stakes to below 25 per cent in order to comply with regulatory requirements.