Shares of One 97 Communications Ltd, the parent company of Paytm, experienced a 2.6% decline in early Friday trading, settling at ₹1,125.20 apiece. The dip was attributed to a substantial block deal, which saw a turnover of ₹970 crore within the first three minutes of the session.
Details of the Block Deal
Sources indicate that the block deal involved the sale of up to 86 lakh Paytm shares, accounting for approximately 1.3% of the company's total outstanding equity. The transaction size was valued at ₹963.60 crore, or $100 million, with a floor price set at ₹1,120.65 per share. This represented a 2.99% discount compared to Paytm's closing price of ₹1,155.30 on Thursday.
Selling Shareholders and Placement Agent
The reported selling shareholders included Saif III Mauritius Company Limited, Saif Partners India IV Limited, and Elevation Capital V Limited. Citigroup Global Markets India Private Limited was identified as the placement agent facilitating the deal. Official block deal data is expected to be released after market hours.
The block deal follows Paytm's steady March quarter performance, where strong growth helped offset the impact of PIDF discontinuation and pending UPI incentives. Brokerage firms have maintained a largely positive outlook on the stock.
JM Financial reiterated a 'BUY' rating with a March 2027 target of ₹1,490, citing robust payments gross merchandise value (GMV) growth and improving payment processing margins. They anticipate AI-led operating leverage to drive EBITDA margin expansion despite increased promotional spends.
MOFSL also noted Paytm's consistent progress towards sustainable profitability, supported by improving operating leverage and healthy GMV growth. The brokerage maintained a 'Neutral' rating with a target of ₹1,300 on the stock earlier this month.