Shares of Paytm, India’s leading digital payments and mobile services company, witnessed a notable decline of nearly 3% on May 13, following a large block deal involving 1.7 crore shares, or around 4.1% of the company’s equity. The slump in share price came after reports suggested that Antfin, the fintech investment arm of Alibaba Group, was the likely seller in the deal.
Antfin Reduces Stake in Paytm
Antfin, which was the second-largest shareholder in One 97 Communications (Paytm’s parent company) with a 9.85% stake, has reportedly offloaded 4% equity through a bulk deal. According to the term sheet reviewed, the floor price was set at ₹809.75 per share, a 6% discount from the previous closing price. The total deal value was estimated at around ₹2,200 crore at the offered floor price.
“Antfin offloading a 4% stake triggered a sharp fall in Paytm shares, reflecting investor caution after the block deal.”
Paytm Share Price Movement
Following the stake sale, Paytm shares tumbled to an intraday low of ₹830.55 on May 13. Although the stock managed to recover some ground later in the day, it still traded below the floor price set for the bulk deal, indicating weak investor sentiment around the development.
Vijay Shekhar Sharma Now Largest Shareholder
With Antfin trimming its stake, Paytm’s founder Vijay Shekhar Sharma has emerged as the largest shareholder in the company. He now directly owns 9.05% of the company and indirectly controls another 10.24% through Resilient Asset Management, a foreign entity.
Interestingly, Resilient acquired a 10.3% stake in Paytm from Antfin earlier through the issuance of Optionally Convertible Debentures, a deal that involved no cash exchange. At that time, Paytm shares were trading between ₹850 and ₹890.
“Vijay Shekhar Sharma’s increased stake consolidates his control in Paytm, amid ongoing changes in the company’s shareholding pattern.”
Market Reacts to Shareholding Shift
The market’s reaction to Antfin’s exit reflects concerns about large foreign investors pulling out of major Indian tech firms. While the transaction allows the founder to gain a stronger hold over the company, the discounted pricing and volume of shares exchanged led to pressure on the stock.
In summary, Paytm shares declined nearly 3% after Antfin offloaded 1.7 crore shares, worth ₹2,200 crore at a discounted price. The development reshapes the company’s ownership structure, with Vijay Shekhar Sharma emerging as the single largest shareholder — a significant shift in the control dynamics of the fintech major.