Daijiworld Media Network - Mumbai
Mumbai, May 13: Shares of One97 Communications Ltd, the parent company of digital payments major Paytm, edged lower on Tuesday following a significant block trade involving shares worth Rs 2,380 crore. The transaction, which saw the exchange of 1.7 crore shares, led to speculation about a partial exit by a key investor.
Though the identities of the buyers and sellers were not officially disclosed, media reports suggest that Antfin, a subsidiary of Chinese tech giant Alibaba Group and the second-largest shareholder in Paytm, was likely the seller. Antfin currently holds a 9.85% stake in One97 Communications and was reportedly looking to offload approximately 4% of its holding.
The floor price for the block deal was set at Rs 809.75 per share — a 6% discount to the previous closing price. Citigroup and Goldman Sachs acted as merchant bankers for the transaction, according to a report.
Following the trade, Paytm's stock declined by as much as 4.10%, touching Rs 830.55 — its lowest level since May 9. However, it later trimmed losses to trade around 2% lower at Rs 849 per share.
Despite Tuesday’s decline, the stock has delivered a 145.24% gain over the past 12 months, although it has fallen 16.73% year-to-date, reflecting investor caution amid recent financial performance.
Last week, One97 Communications reported a 15.7% year-on-year decline in revenue for Q4 FY25, bringing in Rs 1,911.5 crore compared to Rs 2,267.1 crore in the same period last fiscal. While the company posted an increase in other income — up by nearly Rs 100 crore to Rs 223.8 crore — it wasn’t enough to offset the broader revenue pressure. Paytm ended the quarter with a net loss of Rs 544.6 crore.
Adding to the recent financial developments, CEO Vijay Shekhar Sharma voluntarily surrendered 21 million employee stock options (ESOPs) last month, resulting in a one-time non-cash accounting expense of Rs 492 crore.
Looking ahead, Paytm expressed optimism about potential regulatory clarity on the implementation of merchant discount rates (MDR) for large UPI transactions — a move that could significantly boost profit margins in the digital payments space.
In Q4 FY25, Paytm's Payment Services segment contributed Rs 1,098 crore in revenue, while the Financial Services segment, a key growth area, saw a 9% quarter-on-quarter rise in revenue to Rs 545 crore.