Block deal today: Paytm shares in focus as Alibaba-affiliate Antfin eyes to sell 4% stake

Shares of One 97 Communications Ltd (Paytm) will be in focus during the trading session on Tuesday as Alibaba Group's subsidiary Antfin is likely to divest up to 4 per cent stake in the fintech major through block deals today, suggested media reports. The stake sale is said to be valued at Rs 2,066 crore.

The floor price for the transaction is set at Rs 809.75 per share, said the reports. This represents a 6.5 per cent discount to Paytm's closing price on Monday at Rs 866.35, where it rose more than 4 per cent for the day. The total market capitalization of the company stood at above Rs 55,250 crore.

Goldman Sachs India Securities and Citigroup Global Markets India are the managers to the stake sale. The book for sale closes at 7 am on Tuesday (May 13) and trades will be executed on the same day, added the reports. Ant previously sold a 10.3 per cent stake in Paytm to its founder and CEO Vijay Shekhar Sharma in August 2023.

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. However, he indirectly owns another 10.24 per cent stake in the company through 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. The company also agreed to cancel 2.1 crore ESOPs granted/vested and non-exercised by Vijay Shekhar Sharma and over 2.22 lakh ESOPs granted but not exercised by his brother Ajay Shekhar Sharma.

Paytm reported a net loss of Rs 544.6 crore in the March 2025 quarter with a 15.7 per cent year-on-year (YoY) fall in revenue at Rs 1,912 crore. The Noida-based company reported a positive Ebitda of Rs 81 crore. Paytm's merchant subscriber base for devices (soundbox) has reached 1.24 crore as of March end, an addition of 8 Lakh machines QoQ.

Management expects Paytm to turn PAT positive next quarter along with multiple growth triggers such as MDR on UPI, return of wallet, etc, said JM Financial. "With CMP implying 27 times FY27E adjusted Ebitda and likely upside risks, we reiterate 'buy' with March 2026 target price of Rs 1,070, valuing Paytm at 60 times FY27E PER," it said.

Management would not like to predict as such but stated that MDR on UPI could happen sooner rather than later in the current financial year. For a UPI MDR of 25 bps, the company can get 5-8 bps from it, conservatively, said YES Securities. The medium-term target is 30-35 per cent revenue growth and Ebitda margin of 15-20 per cent for next year and the long-term, it added with an 'add' rating and target price of Rs 975.

"We maintain our contribution profit estimates and project Paytm to turn Ebitda positive by FY27. We value Paytm at Rs 870 based on 18 times FY30E Ebitda discounted to FY26E, which corresponds to 5.2 times FY26E sales. We reiterate our 'neutral' rating on the stock," said Motilal Oswal Financial Services.