Paytm Likely To Sell 3.6% Stake Via Block Deal On August 25: Report

Paytm promoter Antfin is likely to sell around 3.6% stake or 2.3 crore shares of the fintech company through a block deal, according to a report by Bloomberg. 

The floor price for the deal is likely to be at a discount of Rs 880.10 per share. The shares of Paytm closed 0.15% lower at Rs 904.20 apiece on BSE on Thursday.

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The company informed the exchanges on August 7 that Vijay Shekhar Sharma, founder and chief executive officer of One 97 Communications Limited and Antfin have entered into an agreement where Sharma will purchase a 10.3% stake in Paytm. This will make Sharma and the promoter entities the largest shareholder of Paytm.

As per the filing, Resilient Asset Management BV, which is an overseas entity 100% owned by Sharma, will acquire the stake in Paytm from Antfin through an off-market transfer.

On completion of the deal, Sharma’s shareholding in Paytm will increase to 19.42%, whereas Antfin’s shareholding will reduce to 13.5%. In February this year, Alibaba Group sold its remaining stake in Paytm for about Rs 1,378 crore or $167.14 million through a block deal.

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According to reports, it's not just Antfin, SoftBank has also been offloading its shares in Paytm regularly over the last couple of months in small tranches through open market transactions.

SVF India Holdings (Cayman) Ltd, a SoftBank arm, had sold 13,103,148 shares between February and May this year, which represents approximately 2.07% of the total shareholding for about $120 million.