Shares of One97 Communications, the parent company of Paytm, experienced a notable drop of 4%, hitting a low of Rs 830.55. This decline follows reports indicating that Antfin, a key investor, is poised to divest shares valued at approximately Rs 2,200 crore through a series of block deals.
Antfin’s Planned Share Sale
Antfin is set to sell nearly 4% of its stake in One97 Communications, with a proposed floor price of Rs 809.75 per share. This price represents a 6% discount compared to Paytm’s closing share price on May 12, which was Rs 863.10, reflecting a 3.66% increase that day.
- Current Stake: As of March 2025, Antfin owned around 9.85% of One97 Communications.
- Background: Antfin is linked to the Alibaba Group, a major Chinese conglomerate, and its significant shareholdings in Paytm’s parent firm are managed through its Netherlands-based subsidiary, Antfin (Netherlands) Holding B.V..
Investment Banks Involved
Leading financial institutions Citi and Goldman Sachs are reportedly facilitating the anticipated block trade, as per recent financial news.
Paytm’s Financial Performance
In its Q4 FY25 earnings report, Paytm disclosed a consolidated net loss of Rs 540 crore, a slight improvement from the Rs 550 crore loss recorded in the same quarter of the previous year. Remarkably, when excluding exceptional items, the net loss for this quarter narrowed to Rs 23 crore. The exceptional expenses, totaling Rs 522 crore, primarily included a Rs 492 crore charge for accelerated Employee Stock Ownership Plan (ESOP) expenses, which the company’s founder, Vijay Shekhar Sharma, waived this quarter.
Recent Stock Trends
Paytm’s stock has shown resilience, rising 1.9% over the past five trading days. In the last month, it has climbed by 2.7%, and notably, over the previous six months, the stock has surged by 15%. Impressively, in the past year, Paytm’s shares have delivered a stunning 151% return, showcasing its potential as a multibagger investment.
With these developments, investors are closely monitoring the situation as the market reacts to Antfin’s forthcoming share sale and Paytm’s financial trajectory.
