#1 PayTM's Puzzle Pieces: A Tale of Ownership and Friendship

How did Vijay Shekhar Sharma buy 10% shares of his company without paying cash?

Hey there!

So, you know how when you play with your friends, you sometimes share your toys? Well, imagine if you and your friend had a special toy that you both really liked, and you decided to share it in a certain way.

This news is about a person named Vijay Shekhar Sharma, who is like the owner of a big company called Paytm. He's buying a part of his company from another company called Ant Financial. It's like he's getting more of the toy from his friend.

He's not giving money for it like we usually do when we buy things. Instead, he's saying, "Hey, I'll give you a special promise that I'll pay you in the future, and in return, you let me have this part of my company now." This special promise is called "optionally convertible debentures" or OCDs. It's like giving your friend a special IOU (I owe you) note.

Now this is not done by Vijay directly.

He owns a company that is registered in Netherlands by the name ‘Resilient Asset Management’. Instead of direcly issuing OCDs, he will use this company to issue OCDs to Antfin.

Once this is done, Vijay Shekhar Sharma will have more of his company, like having more pieces of the toy. And the other company, Ant Financial, which is like his friend, will have a little bit less of the company. They used to be really close friends, but they decided to share the toy differently because of some grown-up reasons.

Oh, and by the way, Ant Financial and its bigger parent company, Alibaba, used to help Paytm with its online store, but they decided to sell some of their shares to Paytm and move away because they wanted to do other things.

So, in simple words, the news is like Vijay Shekhar Sharma getting more pieces of his company's toy from his friend Ant Financial using a special promise, and they are changing how they share their toys because they want to do different things now.

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