Paytm jumps over 4% after Rs 2,038-crore block deal; Saif Partners, Elevation Capital likely sellers

Shares of One 97 Communications, the parent company of Paytm, jumped over 4% to Rs 1,436 on the BSE on Tuesday after a major block deal worth Rs 2,038 crore was executed on the bourses. According to term sheets seen by The Economic Times, early investors Saif Partners and Elevation Capital trimmed their holdings in the fintech company through a secondary share sale.

The transaction involves the sale of up to 1.49 crore equity shares, representing around 2.3% of Paytm's outstanding equity, according to a term sheet seen by The Economic Times. The floor price has been set at Rs 1,339.65 per share, reflecting a 4.99 per cent discount to Monday's closing price of Rs 1,410. Morgan Stanley is the sole placement agent for the deal. Since the transaction is entirely secondary in nature, Paytm will not receive any proceeds from the share sale.

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The selling shareholders include Saif Partners India IV, Saif III Mauritius Company and Elevation Capital V. Before the transaction, Saif Partners India IV owned around 3.63 per cent of Paytm, while Saif III Mauritius held about 8.55 per cent, according to the term sheet. The stake held by Elevation Capital V was not disclosed, although it is one of the company's long-time early investors.

Under the terms of the transaction, the selling shareholders will be subject to a 60-day lock-up period, restricting any further share sales during this time, subject to customary exceptions.

Paytm Q1 results

The block deal comes weeks after Paytm reported a strong set of quarterly earnings. For the quarter ended June 2026, the fintech company posted a consolidated net profit of Rs 220 crore, up 79 per cent from Rs 123 crore in the corresponding quarter last year.

The company's board also decided against proceeding with a bonus issue, saying it would instead continue focusing on compounding growth and profitability to create long-term shareholder value.

"After evaluating the proposal from the perspective of long-term shareholder value and due deliberation, the Board was of the view that the company should continue to focus on further compounding growth and profitability for shareholder value creation. Accordingly, the Board decided not to proceed with the said proposal at this time," the company said.

Instead, the board approved an additional investment of Rs 100 crore through subscription to equity shares of its wholly owned subsidiary, Paytm Money.

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Revenue from operations rose 28 per cent year-on-year to Rs 2,448 crore from Rs 1,918 crore. On a sequential basis, revenue increased 8 per cent from Rs 2,264 crore in the March quarter. Total income for the quarter stood at Rs 2,630 crore, up 22 per cent from Rs 2,159 crore a year ago and higher than Rs 2,442 crore reported in the previous quarter.

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