How Vijay Shekhar Sharma-led Paytm doubled after crashing from listing price

Vijay Shekhar Sharma-led Paytm’s stock price has doubled to nearly Rs 840 per share from its 52-week low of Rs 438.35 per share. However, the stock still trades way below the listing price of Rs 1,955 per share.

The stock has doubled on the back of Vijay Shekhar Sharma entering into an agreement with Antfin (Netherlands) Holding B.V., earlier this week. Under the terms of agreement, Antfin will transfer approximately 65.5 lakh shares (10.30 per cent equity) of Paytm to Resilient Asset Management B.V., an entity 100 per cent owned by Sharma. This deal also makes Sharma the largest shareholder in the company with a total stake of 19.42 per cent.

Sharma, after signing the agreement, said, “I am proud of Paytm's role as a true champion of made-in-India financial innovation, and our achievements in revolutionising mobile payments and contributing to formal financial services inclusion in the country. 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.

What has supported the surge in stock price?

Another factor that has pushed the stock in the recent past is the company’s operating performance for the month of July. The company revealed that the value of loans distributed through the Paytm platform stood at Rs 5,194 crore in July while the average monthly transacting users (MTU) stood at 9.3 crore, up 19 per cent annually. The increase in MTU reflects continued expansion of the company’s customer base, Paytm added.

Furthermore, the number of merchants paying subscription for payment devices reached 82 lakh as of July, an increase of 3.8 lakh devices in the month. Meanwhile, its Merchant Payment Volumes (GMV) grew 39 per cent annually to Rs 1.47 lakh crore.

The stock of Paytm was trading at Rs 831.05 per share, down over 2.3 per cent, at 2:02 pm.

In other developments, Paytm rolled out two innovative devices, Paytm Pocket Soundbox and Paytm Music Soundbox, last month. The first-of-its-kind portable device, Paytm Pocket Soundbox, can fit in one's pocket and is as small as a debit card. Meanwhile, Paytm Music Soundbox doubles up as a speaker that issues payment notifications and can also be connected to the phone to play music via bluetooth.