Paytm shares clock 52-week high amid block deal buzz
Chinas Antfin would likely sell a 3.6 per cent stake in the digital payments company in a block deal worth an estimated Rs 2,007.07 crore on Friday, Zee Business reported earlier in the day.
Paytm shares registered a fresh record on Friday amid reports of a likely block deal in the digital payments company. The stock of Paytm parent One97 Communications gained by as much as Rs 34.8, or 3.8 per cent, to Rs 939 apiece on BSE, surpassing a 52-week high of Rs 931 hit the previous day.
China's Antfin would likely sell a 3.6 per cent stake, out of its 13.49 per cent holding, in the digital payments company in a block deal worth an estimated Rs 2,007.07 crore on Friday, Zee Business reported earlier in the day.
The transaction would likely take place at Rs 880.1 per share, which translates to a discount of 2.7 per cent to Thursday's closing price, according to the report.
Paytm traded in large volumes on Dalal Street in the first few minutes of trade. By 10:25 am, the stock gave up a significant portion of its initial gains, quoting higher by Rs 13.2, or 1.5 per cent, at Rs 917.4 apiece. As many as 2.3 crore shares changed hands on the bourse in intraday deals so far as against a daily average of 1.5 lakh in the past two weeks, according to provisional exchange data.
The deal is set to make it easier for Paytm to procure regulatory approvals for its expansion plans.
Earlier this month, Paytm Chairman Vijay Shekhar Sharma-owned overseas entity Resilient bought a 10.3 per cent stake in the digital payments company from Antfin. With that, he became the largest shareholder in the digital payments firm with a holding of 19.42 per cent. Resilient is wholly-owned by Sharma.
Sharma looks to simplify its ownership structure amid broader concerns about Chinese ownership in Indian financial technology companies, news agency Reuters quoted analysts as saying.
Sharma also became the sole Significant Beneficial Owner (SBO) of Paytm. As per laws, 10 per cent is a crucial threshold limit for determining the SBO of a company.
With inputs from agencies
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