Paytm Shares in Focus After ₹2,038 Crore Block Deal; Saif Partners, Elevation Capital Likely Sellers

Shares of One 97 Communications, the parent of Paytm, were in focus on Tuesday after a block deal worth around ₹2,038 crore saw 1.49 crore shares, or 2.32% of the company's equity, change hands. Exchange data showed the transaction was executed at ₹1,368 per share, valuing the deal at about ₹2,038 crore and implying a discount of nearly 3% to Monday's closing price.

The stock rose as much as 0.7% in early trade before turning volatile. At the time of writing, One 97 Communications shares were trading at ₹1,394, down ₹16 or 1.13% on the day. The stock had rallied nearly 5% on Monday and is up about 9% so far this year, outperforming the Nifty 50, which has declined around 5.3% during the same period.

Block Deal Details

The transaction followed a CNBC-TV18 report on Monday evening that early investors Saif Partners and Elevation Capital were planning to pare their stakes in Paytm through a secondary share sale.

According to a term sheet accessed by CNBC-TV18, the proposed transaction involved the sale of up to 1.49 crore equity shares, representing around 2.3% of Paytm's outstanding equity, at a floor price of ₹1,339.65 per share, a discount of 4.99% to Monday's closing price.

The proposed sellers included Saif Partners India IV, Saif III Mauritius Company and Elevation Capital V, all among Paytm's early investors. Before the transaction, Saif Partners India IV held a 3.63% stake in the company, while Saif III Mauritius owned around 8.55%. Morgan Stanley acted as the sole placement agent for the deal.

The transaction was structured entirely as a secondary share sale, meaning One 97 Communications will not receive any proceeds. The deal allows existing shareholders to monetise part of their investments.

Paytm has seen several early investors trim their holdings over the past few years following the expiry of post-listing lock-in periods. Despite these stake sales, investor sentiment towards the stock has improved in recent months. On Monday, the stock touched an over four-year high of ₹1,437 on the BSE, its highest level since December 2021.

The block deal comes days after Paytm reported a strong set of numbers for the June quarter. The company posted a consolidated net profit of ₹220 crore for Q1 FY27, up 79% year-on-year from ₹123 crore, while revenue from operations increased 27.6% to ₹2,448 crore.

Alongside the quarterly results, the company's board decided not to proceed with the previously proposed bonus issue. It also approved seeking shareholder approval to revise the utilisation of the remaining ₹1,686 crore from its IPO proceeds, extending the deployment timeline to March 31, 2029. The funds will be used for customer and merchant acquisition, new business initiatives, acquisitions and strategic partnerships.

Also Read - ICICI Bank, HDFC Bank, Groww Among Top Picks After Q1 2026 Results: Kotak Neo Research