Mr. Vijay Shekhar Sharma, who is the founder and the chief executive officer of Indian based fintech start-up company Paytm has just purchased 1.7 lakh shares of his own company increase his stake in the firm. The shares add up to a staggering amount of Rs. 11 crores.
According to official reports from the company, this deal took place on the final days on the month of May. According to the same reports, Mr. Sharma acquired 1,00,552 shares on the 30th of May and on the next day, he acquired the remaining 71,469 shares. The shares that he bought on the first day had a value of Rs. 6.31 crores while the remaining ones he acquired on the final day of May had amounted to Rs. 4.68 crores both at the time of purchase.
According to the stock exchange rules and regulations, Mr. Sharma could not legally acquire these shares of the company for a minimum of half a year being a selling stake holder in the start-up company’s initial public offering which took place in November. Now that the half a year has passed, he pounced on the opportunity and purchased a larger stake in the company he has been part of since day one.
Just two months ago, Mr. Sharma penned a letter to all the major shareholders and investors of the company that the company will break even EBITDA within the next year and a half.
It has been just over 7 months since Paytm went public with their monstrous initial public offering and it is safe to say that the decision was a big flop with the shares of the company falling consistently since it went public. When the company first went public, the price per share stood at Rs. 2150. However, when you fast forward by 7 months, the price per share of the company stands at Rs. 646. Their IPO completely tanked and it felt like the end is near. However, not all hope is lost as the share price of the company has since stabilised and has even been slowly climbing over the past few weeks.
The company is still running losses, but their revenue has been going up quarter by quarter and is set to breakeven sometime in 2023. It seems like although the company had a horrible end to 2021 and an even worse start in 2022, the company has been able to steady itself and is now trying to get profitable and rule the fintech industry in the country.