Industry Odisha Bureau, Aug 18: Resilient Asset Management is preparing to sell a significant stake in Paytm. The proposed transaction could involve selling up to five percent of Paytm’s equity. The asset management firm’s proposed stake sale could reach Rs 4,900 crore total. The block deal transaction is scheduled to occur on Tuesday through exchange mechanisms. Paytm shares will therefore remain in focus as investors watch the proceedings closely.
The floor price for the proposed block transaction has been fixed specifically. Goldman Sachs is acting as the banker managing the entire transaction process throughout. The floor price stands at Rs 1,535 per share according to available sources. This represents approximately a three percent discount to Paytm’s then-current market trading price. The base deal comprises around 19.2 million shares in the overall transaction structure.
An additional greenshoe option could allow selling 12.4 million more shares if exercised. The greenshoe option would increase the overall transaction size to five percent maximum. Therefore, the total transaction could potentially cover up to five percent of equity. The structure provides flexibility regarding how much Paytm’s ownership could ultimately change hands.
Resilient Asset Management currently holds approximately 10.2 percent of Paytm as of June. The asset management firm had acquired this substantial stake during 2023 from Antfin. The acquisition was made against optionally convertible debentures, or OCDs, according to filings. The proposed transaction could significantly reduce Resilient’s overall stake if fully executed eventually.
Paytm has delivered strong financial performance in recent quarters according to results. Revenue increased 8.1 percent to Rs 2,448 crore during the first quarter. The comparison was against Rs 2,264 crore in the previous quarter respectively. Net profit jumped 20 percent to Rs 220 crore from Rs 184 crore. Earnings before interest, taxes, depreciation and amortisation expanded 54 percent quarter-on-quarter substantially.
Ebitda reached Rs 203 crore compared with Rs 132 crore in the prior quarter. The Ebitda margin expanded significantly to 8.3 percent from 5.8 percent quarter-on-quarter. Paytm has now recorded five consecutive quarterly profit periods according to available data. The profitability milestones represent a notable performance shift for the fintech company.
Paytm’s share price has delivered mixed recent movements in equity market trading. Shares closed 1.42 percent lower at Rs 1,580.20 per share on Monday. Over one week, the shares have declined 0.25 percent according to price data. However, shares have gained 17.23 percent over the past one-month timeframe significantly. Over one year, Paytm shares have appreciated 37.25 percent according to performance records.
The proposed block deal puts Paytm’s shareholder structure and ownership focus under scrutiny. Investors will closely monitor how much Resilient’s stake ultimately changes through the transaction. The timing is notable given Paytm’s recent strong financial and share-price performance. The transaction’s overall impact will partly depend on the final quantity of shares.
The block deal transaction will attract attention from institutional and retail investors watching. The proposed sale comes against the backdrop of Paytm’s recent profitability and gains. Shareholders and market participants will assess the transaction’s implications for future ownership structure. The proposed stake reduction could signal changes in Resilient’s long-term Paytm positioning strategy.
