Alibaba-backed company to sell its stake in Paytm worth ₹3,800cr
What's the story
Alibaba-backed Antfin (Netherlands) Holding B.V., a major shareholder of One97 Communications (Paytm), is planning to divest its entire 5.84% stake in the company. The stake, worth around ₹3,803 crore, will be sold through a block deal on Indian stock exchanges tomorrow. The sale will include up to 3.77 crore equity shares and has been priced at ₹1,020 per share—a discount of about 5.4% from Paytm's last closing price of ₹1,078.20 today on the NSE.
Strategic move
'Clean-up trade' with no lock-in period
The upcoming sale is a secondary transaction, meaning no new equity will be issued by the company. It has been termed a "clean-up trade" with no lock-in period after the deal. Citigroup Global Markets India and Goldman Sachs (India) Securities are acting as placement agents for this transaction. The order book will open at 7:00am IST tomorrow, and may close earlier depending on investor demand.
Stake history
Antfin's gradual exit from Paytm
Antfin has been gradually reducing its stake in Paytm over the past two years. The latest sale comes after a previous block deal in August 2023, where Antfin sold shares worth around ₹1,371 crore. This is part of its strategy to reduce exposure and align with regulatory sentiment regarding long-term Chinese-origin investors.
Business update
Paytm's improved operating metrics
Despite the stake sale, Paytm has posted improved operating metrics in Q1 FY26. The company has reported narrower losses and transitioned from a Default Loss Guarantee (DLG)-backed lending model to a pure distribution platform for loan products. It is also working on stabilizing its merchant and consumer lending business.