Paytm Shares Fall After Block Deal Report

Shares of One97 Communications, the parent company of Paytm, were trading 3.8% lower at ₹1,112 apiece around 10:05 am on May 22 after nearly 86 lakh shares changed hands in a large transaction.

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According to reports, SAIF Partners planned to sell around 1.3% equity in the company through a block deal. The reported floor price for the transaction was ₹1,120.65 per share, representing a discount of nearly 3% to Paytm’s closing price on May 21.

Exchange data showed that SAIF Partners India IV Limited held around 4% stake in the fintech company as of March 31, 2026. The proposed transaction also reportedly includes a 30-day lock-in period for the seller.

Large shareholder exits or stake reductions through block deals often lead to short-term pressure on stock prices due to concerns around supply in the secondary market.

Stock Had Rallied After Profitability Milestone

The decline in Paytm shares comes after a strong recovery in investor sentiment over recent months, supported by an improvement in the company’s financial performance.

Earlier this week, Goldman Sachs maintained its “buy” rating on the stock and assigned a target price of ₹1,400 per share. The brokerage noted that Paytm expects stronger revenue growth in FY27, driven by merchant lending, payments monetisation and operating leverage. The company recently reported its first full-year profit since listing.

For the March quarter, Paytm posted a consolidated net profit of ₹184 crore compared with a loss of ₹540 crore in the corresponding period last year. For the full FY26 financial year, the company reported profit after tax of ₹552 crore.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) also turned positive during the quarter.

Operational Performance Improves

Quarterly EBITDA stood at ₹132 crore against a loss of ₹88 crore in the year-ago period, reflecting lower costs and improved operating efficiency.

Paytm has been focusing on expanding its merchant ecosystem, financial services distribution and lending partnerships after facing regulatory challenges during the previous financial year.

The company has also been strengthening its payments business while increasing monetisation across subscription services and merchant devices.

Despite Thursday’s decline, the stocks has recovered significantly from its lows seen earlier after investors responded positively to the company’s return to profitability and stabilisation in core operations.

Market participants are expected to monitor further stake sale activity and institutional participation in the stock following the reported block transaction.