What Impact Did the Large Trade Order Have on Paytm's Stock?
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Synopsis
Shares of One97 Communications Ltd, the parent of Paytm, faced a minor decline following a massive trade order involving 1.7 crore shares valued at Rs 2,380 crore. Antfin, likely the seller, aims to offload a portion of its stake, raising questions about the company's future performance.
Key Takeaways
- One97 Communications Ltd shares saw a marginal decline.
- Large trade order valued at Rs 2,380 crore.
- Antfin may be the seller of the shares.
- Revenue dropped by 15.7 per cent in Q4 FY25.
- Expectations of regulatory clarity could enhance margins.
Mumbai, May 13 (NationPress) The shares of One97 Communications Ltd, which is the parent company of Paytm, experienced a slight decline on Tuesday after a significant stock transaction worth Rs 2,380 crore took place, involving 1.7 crore shares. Reports indicate that while the identities of the buyers and sellers remain undisclosed, Antfin, a subsidiary of the Alibaba Group, was likely the seller.
Antfin, holding a 9.85 per cent stake in One97 Communications, aimed to divest a 4 per cent share in this financial services entity. The fintech giant established a floor price of Rs 809.75 per share, reflecting a 6 per cent discount from the prior closing price.
According to NDTV Profit, international investment firms Citigroup and Goldman Sachs are facilitating this transaction. Shares of Paytm decreased by as much as 4.10 per cent to Rs 830.55 each, marking the lowest price since May 9. However, losses were later moderated, with shares trading 2 per cent lower at Rs 849 each.
Over the past year, the stock has appreciated by 145.24 per cent but has seen a 16.73 per cent decline year-to-date. Last week, One97 Communications Limited disclosed a 15.7 per cent drop in revenue, amounting to Rs 1,911.5 crore for Q4 FY25, down from Rs 2,267.1 crore in the same quarter of the previous fiscal year.
The decline in revenue occurred despite an increase in other income, which rose by nearly Rs 100 crore to Rs 223.8 crore, as per the company's stock exchange filing. Unfortunately, this was insufficient to compensate for broader challenges, leading to a net loss of Rs 544.6 crore for the quarter.
In an intriguing development last month, Paytm's CEO, Vijay Shekhar Sharma, relinquished 21 million ESOPs, resulting in a one-time non-cash expense of Rs 492 crore.
Paytm also noted that the payments sector is optimistic about upcoming regulatory clarity regarding merchant discount rates (MDR) for substantial UPI transactions, which could enhance profit margins.
In the fourth quarter of FY25, Paytm achieved Rs 1,098 crore in revenue from its Payment Services segment, which encompasses other operational income. The Financial Services segment continued to be a critical growth catalyst, recording a 9 per cent quarter-on-quarter increase in revenue to Rs 545 crore.
Point of View
It is essential to approach this situation with neutrality. The slight decline in Paytm's stock following a large trade order signals potential market volatility, yet the overall performance indicates a robust long-term growth trajectory. Stakeholders should remain cautious but optimistic as regulatory changes within the payments industry may provide opportunities for recovery.
NationPress
21/09/2025
Frequently Asked Questions
Why did Paytm's stock decline recently?
The stock fell due to a large trade order involving 1.7 crore shares, with Antfin likely offloading a portion of its stake.
What is the significance of Antfin's stake in Paytm?
Antfin holds a 9.85 per cent stake in One97 Communications, making it a significant shareholder and its actions can influence market dynamics.
How have Paytm's revenues changed recently?
Paytm reported a 15.7 per cent drop in revenue for Q4 FY25, although other income showed an increase.
What is the future outlook for Paytm?
With anticipated regulatory clarity on merchant discount rates, Paytm could see improved margins, fostering a more optimistic outlook.
What impact do large trades have on stock prices?
Large trades can lead to significant price fluctuations, reflecting market sentiment and potential changes in investor confidence.
