Paytm shares fall 2% after large trade; Here's the likely seller

Business Standard

16 hours ago

Shares of One 97 Communications, the operator of Paytm, fell nearly 2 per cent on Tuesday after about 18.7 million shares changed hands in a large trade on the Bombay Stock Exchange.
The company's stock fell as much as 1.87 per cent during the day to ₹1,058 per share, the steepest intraday fall since July 31 this year. The stock pared losses to trade 1.1 per cent lower at ₹1,066 apiece, compared to a 0.40 per cent advance in Nifty 50 as of 10:17 AM.
Shares of the company have been range-bound since the latter part of July and currently trade at 38 times the average 30-day trading volume, according to Bloomberg. The counter has risen 5.1 per cent this year, compared to a 4.3 per cent advance in the benchmark Nifty 50. One 97 Communications has a total market capitalisation of ₹68,354.46 crore. Track LIVE Stock Market Updates Here
One 97 Communications block deal
Paytm shares were the most-traded Indian stock by value and volume, according to Bloomberg, as about 18.7 million shares, or 2.9 per cent equity stake, changed hands on BSE. The buyers and sellers were not known immediately.
Meanwhile, the news agency earlier reported that an affiliate of China's Ant Group Co. is looking to exit Paytm in a deal valued at about $434 million. Antfin Netherlands Holding B.V. has offered to sell as many as 37.3 million shares, it said, at a floor price of ₹1,020 per share. Citigroup Inc., Goldman Sachs Group were managing the sale, it added.
As per shareholding data available on the BSE, Antfin held about 5.84 per cent stake in the company as of the June 2025 quarter. In August 2023, it had offloaded a 10.3 per cent stake in the company. Prior to it, the investor held a 23.79 per cent stake in Paytm as of the June 2023 (Q1FY24) quarter, data from the BSE shows.
Antfin is the last remaining Chinese shareholder, and once the deal is executed, Paytm will no longer have any Chinese ownership.
JM Financial on Antfin exit
If the Chinese investor exits the company, it would remove a long-standing overhang, potentially leading to a positive reaction in Paytm's stock as ownership concerns ease and supply pressure subsides, JM Financial said. "Such clean-out trades often provide clarity to the market, allowing investors to refocus on fundamentals and future growth."
The exit also aligns the cap table more closely with regulatory expectations, which could be viewed favourably in the context of Paytm's pending payment aggregator license, it added.
Paytm shares have rebounded strongly from the January 2024 regulatory setback, reporting PAT profitability in Q1FY26. Higher contribution margins and controlled indirect expenses may drive a sharp rise in profits, with focus shifting back to sustainable growth, the brokerage said.
Paytm Q1 results
The June quarter (Q1FY26) marked a turnaround for Paytm as the company reported a consolidated profit of ₹122.5 crore, against a net loss of ₹838.9 crore in Q1FY25. Paytm had posted a net loss of ₹539.8 crore in Q4FY25.
Additionally, its revenue from operations grew 27.7 per cent to ₹1,917.5 crore in Q1FY26 from ₹1,501.6 crore in Q1FY25. Sequentially, revenue from operations remained stagnant compared to ₹1,911.5 crore in Q4FY25.