Paytm block deal: SAIF Partners, others likely to sell stake worth Rs 963 crore, says report

Fintech company One 97 Communications Limited is likely to see a block deal on Friday where existing investors like SAIF Partners and Elevation Capital Entities, according to an ET Now report. Around 8.6 million shares of Paytm are expected to change hands through the transaction and the floor price for the deal has reportedly been fixed at Rs 1,120.65 per share, the report said, citing sources. The floor price implies a discount of nearly 3% to the stock’s previous closing price.

The stake sale through a block deal from existing shareholders is likely to be worth $100 million worth of shares.

Global investment bank Citi has reportedly been appointed as the placement agent for the transaction.

As per the shareholding data available on the BSE, SAIF Partners held shares in One 97 Communications through its affiliates Saif Partners India Iv Limited and Saif Iii Mauritius Company Limited. While the former held over 2.56 crore shares as on March 31, that represented 4% stake, the latter held over 6 crore share accounting for 9.43% equity.

The development comes after a sharp recovery in Paytm shares over the past year, aided by improving operational metrics, narrowing losses and renewed investor confidence in the digital payments ecosystem. The stock has delivered 34% over a one-year period.

One 97 Communications reported a net profit of Rs 184 crore in the fourth quarter, compared with a loss of Rs 540 crore in the year-ago quarter. In the year-ago quarter, its results ‌were affected by a one-time expense on charges related ⁠to CEO Vijay Shekhar Sharma giving up his employee stock options.

Revenue from operations rose 18% YoY to Rs 2264 crore.Paytm’s EBITDA turned positive at Rs 132 crore, against a loss of Rs 88 crore a year ago, although it moderated from Rs 156 crore in the December quarter. EBITDA margin stood at 6%, compared with a negative 5% a year earlier.

The company said its comparable EBITDA, excluding UPI and PIDF incentives, improved by Rs 330 crore YoY, reflecting stronger organic profitability.

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