Paytm Block Deal: Paytm’s stock has gained tremendous momentum in recent times, so its investors are constantly busy selling shares through block deals. On Friday, 25 August 2023, Paytm’s promoter company Antfin Paytm is set to sell 3.6 per cent stake ie 2.3 crore shares through a block deal.
The floor price of Paytm shares for the block deal is Rs 880.10, a 2.70 per cent discount from Thursday’s closing price. but has been fixed. While the stock has closed at Rs 904.45. On 7 August 2023, there was an agreement between Vijay Shekhar Sharma, founder and CEO of Paytm’s parent company One97 Communication Limited, and Antfin that Vijay Shekhar Sharma would buy 10.3 per cent stake in Paytm.
Vijay Shekhar Sharma’s Resilient Asset Management BV will buy stake in Paytm from Antfin in an off market transaction. After this transaction, Vijay Shekhar Sharma’s stake in Paytm will increase to 19.42 per cent. Antfin’s stake was 23.79 per cent at the end of June 2023 quarter, which will come down to 13.5 per cent after the block deal.
Paytm stock has given excellent returns to investors in 2023. In 2023, the stock has gained close to 71 percent. The stock made a low of Rs 438 in 2022, which has now doubled. However, Paytm’s stock is still trading below its IPO price of Rs 2150. There has been news of relief for Paytm’s stock on Thursday. Research firm Bernstein has advised to buy the stock for a target of Rs 1,100. That is, the stock can give a return of 22 per cent from the current level.
Paytm’s performance is showing continuous improvement. In the first quarter, the fintech company has given a loan of Rs 14,845 crore from its platform, which is 167 percent more than the same quarter last year. However, since the listing of Jio Financial Services, Paytm is expected to face a big challenge.
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