Paytm Block Deal: SAIF & Elevation Capital Offload 2% Stake for Rs 1,722 Cr; One97 Communications Shares Slip

Shares of One97 Communications Ltd, the parent company of Paytm, came under pressure on Tuesday after a significant block deal triggered selling interest in morning trade. In this large transaction, 1.32 crore shares changed hands, representing about 2.07 percent of the company's total equity. The shares were exchanged at Rs 1,307 per piece, valuing the overall deal at approximately Rs 1,722 crore.

Paytm Block Deal: Investors SAIF & Elevation Capital Likely Sellers

The development comes just a day after reports suggested that three major early investors-SAIF III Mauritius, SAIF Partners and Elevation Capital were preparing to offload up to 2 percent of Paytm's outstanding equity through block deals. These investors had reportedly set a floor price of Rs 1,281 per share, which was about 3.9 percent lower than Monday's closing price.

Based on this floor price and the expected quantity of shares to be sold, the deal was estimated to be worth up to Rs 1,639.7 crore. However, Tuesday's final deal value of Rs 1,722 crore indicates that the entire expected stake was sold, and at a higher-than-expected clearing price of Rs 1,307.

Regulatory filings for the September quarter show that SAIF III Mauritius held a 10.76 percent stake, while SAIF Partners India IV Ltd held 4.57 percent in Paytm. Their combined holdings make them some of the company's most prominent early-stage investors.

The block sale also comes with a 60-day lock-up period, preventing these investors from conducting additional stake sales during this timeframe, which may help limit further supply pressure on the stock in the near term.

Paytm Share Price Today

Following the block deal, shares of One97 Communications Ltd were trading lower on 18 November, with the stock priced at Rs 1,306.70 at 10:29 am, down Rs 26.20 or 1.97% for the day. The stock opened at Rs 1,314.00 and touched an intraday high of Rs 1,333.90, while the day's low so far stood at Rs 1,302.30.

Despite the temporary weakness, Paytm's share price has staged a remarkable recovery over the past year. The stock has risen more than four times from its all-time low of nearly Rs 300, hit in early 2024. Even with this sharp rebound, the stock still trades below its IPO issue price of Rs 2,150.