Paytm Shares Gain As Elevation Capital Sells Rs 2,038 Crore Stake Via Block Deal
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Paytm shares held steady and gained over 1% even as early investor Elevation Capital offloaded a Rs 2,038 crore stake via block deal, days after the company posted its strongest-ever quarterly profitability, with institutional investors including NPS Trust and Axis Mutual Fund stepping in as buyers.
Shares of One 97 Communications Ltd, the parent of Paytm, rose more than 1% on Thursday, August 6, even as early investor Elevation Capital sold shares worth over ₹2,038 crore through block deals. The stock was trading at ₹1,448.60, up ₹19.60 or 1.37%, in morning trade.
The block deal comes days after Paytm reported its strongest quarterly profitability to date. For the June quarter (Q1 FY27), operating revenue rose 28% year-on-year to ₹2,448 crore, while EBITDA jumped 182% to a record ₹203 crore. Profit after tax increased 79% to ₹220 crore.
Excluding the Payments Infrastructure Development Fund (PIDF) incentive, which was available until December 2025, operating revenue grew 31% year-on-year, while EBITDA margin expanded by seven percentage points. The company said the performance reflected higher operating leverage and improved efficiency across its business.
Merchant Gross Merchandise Value (GMV) increased 31% year-on-year to ₹7.1 lakh crore, supported by continued expansion in its device merchant network and growth in the online merchant business following the online Payment Aggregator licence received last year. Net payment revenue rose 25% on a comparable basis to ₹601 crore, while payment processing margins remained above four basis points. The device merchant base also expanded to 1.57 crore.
Elevation Capital Sells ₹2,038 Crore Worth Of Shares
Exchange data showed three Elevation Capital-linked entities together sold 1.49 crore Paytm shares worth over ₹2,038 crore through block deals.
SAIF III Mauritius Company accounted for the largest sale, offloading 97.43 lakh shares worth ₹1,332.7 crore. SAIF Partners India IV sold 41.36 lakh shares valued at ₹565.77 crore, while Elevation Capital V divested 10.20 lakh shares worth ₹139.55 crore.
Before the transaction, SAIF III Mauritius Company and SAIF Partners India IV held 8.55% and 3.63% stakes in Paytm, respectively. Both entities operate under the Elevation Capital umbrella, formerly known as SAIF Partners.
The shares found strong institutional demand. The National Pension System Trust emerged as the largest buyer, purchasing 30.2 lakh shares worth ₹413.07 crore, while Axis Mutual Fund acquired 27 lakh shares valued at ₹369.3 crore.
Other institutional buyers included Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas Financial Markets, Sundaram Mutual Fund, Manulife Global Fund, Kotak Mahindra Asset Management Company, ICICI Prudential Life Insurance, Ghisallo Master Fund, Franklin Templeton Mutual Fund and Tata Mutual Fund.
Despite the large block transaction, Paytm shares remained in positive territory, suggesting investors took comfort from the company's improving earnings profile and continued institutional interest in the stock.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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