Shares of One97 Communications Ltd , the parent company of Paytm , tumbled 5 per cent to their day's low of Rs 823.10 on the BSE during early trade on Tuesday. The shares fell amid reports that Ant Financial , the fintech arm of China's Alibaba Group , likely sold a 4.1 per cent stake in the company through a block deal .
At 01.30pm, Paytm shares were trading at Rs 849.35 on the BSE.
While the identities of the buyers and sellers in the transaction are yet to be officially disclosed, sources familiar with the matter said Ant Financial offloaded around 1.7 crore shares, estimated to be worth approximately Rs 2,200 crore. The shares were reportedly offered at a floor price of Rs 809.70 each, a 6.4 per cent discount to Paytm's closing price of Rs 866 on Monday.
Ant Financial, now known as Ant Group, previously held a 9.85 per cent stake in One97 Communications. Following the sale, its holding is expected to fall below 6 per cent.
According to people aware of the deal structure, investment banking firms Goldman Sachs (India) Securities Pvt Ltd and Citigroup Global Markets India Pvt Ltd acted as placement agents for the stake sale.
The sell-off comes amid a turbulent financial period for Paytm. The company reported a consolidated net loss of Rs 540 crore for the fourth quarter of FY25, slightly narrower than the Rs 550 crore loss it posted in the same quarter a year ago. However, when adjusted for exceptional items, primarily Rs 492 crore in accelerated employee stock option (ESOP) expenses and Rs 30 crore in other impairments, the net loss narrowed significantly to Rs 23 crore.
Paytm said its profit after tax (PAT), excluding these exceptional items, is approaching breakeven, suggesting an improving operational outlook despite continued headline losses.
The latest block deal marks yet another move by Chinese investors to pare down their holdings in Indian companies amid ongoing regulatory and geopolitical scrutiny. Earlier, Alibaba had fully exited Paytm in 2023, and Ant Group has since been gradually reducing its exposure as well.
Shares of One97 Communications have been volatile in recent months, impacted by regulatory setbacks, payment aggregator license issues, and the company's broader efforts to regain market trust following operational overhauls.8
At 01.30pm, Paytm shares were trading at Rs 849.35 on the BSE.
While the identities of the buyers and sellers in the transaction are yet to be officially disclosed, sources familiar with the matter said Ant Financial offloaded around 1.7 crore shares, estimated to be worth approximately Rs 2,200 crore. The shares were reportedly offered at a floor price of Rs 809.70 each, a 6.4 per cent discount to Paytm's closing price of Rs 866 on Monday.
Ant Financial, now known as Ant Group, previously held a 9.85 per cent stake in One97 Communications. Following the sale, its holding is expected to fall below 6 per cent.
According to people aware of the deal structure, investment banking firms Goldman Sachs (India) Securities Pvt Ltd and Citigroup Global Markets India Pvt Ltd acted as placement agents for the stake sale.
The sell-off comes amid a turbulent financial period for Paytm. The company reported a consolidated net loss of Rs 540 crore for the fourth quarter of FY25, slightly narrower than the Rs 550 crore loss it posted in the same quarter a year ago. However, when adjusted for exceptional items, primarily Rs 492 crore in accelerated employee stock option (ESOP) expenses and Rs 30 crore in other impairments, the net loss narrowed significantly to Rs 23 crore.
Paytm said its profit after tax (PAT), excluding these exceptional items, is approaching breakeven, suggesting an improving operational outlook despite continued headline losses.
The latest block deal marks yet another move by Chinese investors to pare down their holdings in Indian companies amid ongoing regulatory and geopolitical scrutiny. Earlier, Alibaba had fully exited Paytm in 2023, and Ant Group has since been gradually reducing its exposure as well.
Shares of One97 Communications have been volatile in recent months, impacted by regulatory setbacks, payment aggregator license issues, and the company's broader efforts to regain market trust following operational overhauls.8
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