Paytm block deal: Stock tanks 5% amid heavy turnover; Antfin likely seller

Paytm block deal: Shares of One 97 Communications Ltd (Paytm) clocked turnovers of Rs 2,407 crore on BSE and Rs 857 crore on NSE within minutes into trading, amid a likely block deal on the counter. Alibaba Group's arm Antfin was reportedly looking to divest up to 4 per cent stake in the fintech major via block deals today. The stake sale was valued at Rs 2,066 crore.
Paytm shares tanked 4.99 per cent to hit a low of Rs 823.10 on BSE, but soon recovered some of the lost ground. The scrip was later trading at Rs 845.90, down 2.36 per cent. As per ET NOW, a total of 1.72 crore Paytm shares changed hands in a block deal, accounting for 4.1 per cent of its total outstanding equity.

The floor price for the transaction was said it be set at Rs 809.75 per share. This was at a 6.5 per cent discount to Paytm's Monday closing price of Rs 866.35. 

Ant Fin is the second largest shareholder in the company with a stake of 9.85 per cent as of March 31, 2025. Vijay Shekhar Sharma, Paytm’s founder directly owns 9.05 per cent stake in the company, but he also owned another 10.24 per cent stake in the fintech via a foreign entity named Resilient Asset Management.

Last week One97 and Vijay Shekhar Sharma settled a pending case with the Indian capital market regulator Sebi by paying more than Rs 2.2 crore as settlement fee. 

Paytm shares recently surged after its management said Paytm could turn profit after tax (PAT) positive next quarter, thanks to multiple growth triggers such as Merchant Discount Rate (MDR) on UPI and return of wallet. While Paytm's Q4 sales missed the Street estimates, contribution margin came in line with expectations. Losses jumped sequentially on one-time charge towards acceleration of ESOP expenses.  

UBS has 'Neutral' rating on Paytm with a 12-month price target of Rs 1,000. Emkay Global suggested 'Buy' and finds the stock worth Rs 1,050. JM Financial recently said given the valuations and likely upside risks, it is keeping 'Buy' on Paytm with a March 2026 target of Rs 1,070.