Shares of One97 Communications Ltd., the parent company of Paytm, are expected to remain in focus after early investors SAIF Partners and Elevation Capital announced plans to reduce their holdings through a block deal worth around Rs 2,000 crore. The proposed transaction is scheduled for August 4 and is among the largest secondary share sales involving the company this year.
According to sources, SAIF Partners and Elevation Capital will jointly offload 14.9 million shares, representing about 2.3 per cent of Paytm's equity, through the block deal. The transaction is estimated to be valued at approximately Rs 2,002 crore. Morgan Stanley is acting as the banker for the share sale. As of the June quarter, SAIF Partners held a 3.63 per cent stake in the company, while Saif III Mauritius Company owned 8.55 per cent.
The planned stake sale comes shortly after Paytm reported improved financial performance for the first quarter of the 2026-27 financial year. The company posted consolidated revenue of Rs 2,448 crore, marking an 8.1 per cent sequential increase from Rs 2,264 crore reported in the previous quarter.
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Paytm's net profit rose 20 per cent quarter-on-quarter to Rs 220 crore from Rs 184 crore. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to Rs 203 crore from Rs 132 crore in the previous quarter, while the EBITDA margin expanded to 8.3 per cent from 5.8 per cent.
The latest quarterly performance marked Paytm's fifth consecutive profitable quarter, reflecting continued improvement in its financial metrics. The company has focused on strengthening its payments and financial services business while maintaining profitability in recent quarters.
The proposed block deal follows reports that existing investors were considering reducing their stakes in the fintech company through the secondary market. Market participants are expected to closely monitor the transaction and its impact on Paytm's share price when trading resumes following the scheduled sale.
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