Ant fin willing to give upto 6% discount for Paytm stake sale

The deal will be executed on Tuesday.

Alibaba Group’s subsidiary Ant-fin is willing to offer upto 6% discount on the current market price to offload 4% of its stake in Paytm, according to the term sheet of the bulk deal. Shares of One97, the parent company of Paytm, closed at Rs 866.3 apiece on Monday and the floor price for the bulk deal is at Rs 809.75 apiece. The deal is being handled by investment banker Goldman Sachs India along with Citigroup Global markets. The book for sale closes at 7 AM on Tuesday(May 13) and trades will be executed on the same day, term sheet said. The deal would be valued at around Rs 2,200 crore at the floor price.

To be sure floor price in this case indicates the minimum price at which bids would be accepted. If there is good demand from institutional investors, the actual bids could be at higher price than the floor price.

Ant Fin is the second largest shareholder in the company with a stake of 9.85% currently. Vijay Shekhar Sharma, Paytm’s founder directly owns 9.05% stake in the company. However, he indirectly owns another 10.24% stake in the company through a foreign entity named Resilient Asset Management.

On August 7 2023, Resilient acquired  10.3% stake in Paytm from Antfin making him the largest shareholder in the company. The deal was done through issuance of Optionally Convertible Debentures and had no cash consideration. At the time of the deal, Paytm was trading at around Rs 850-890 per share.

Last week One97 and Vijay Shekhar Sharma settled a pending case with market regulator the Securities and Exchange Board of India(Sebi) by paying more than Rs 2.2 crore as settlement fee. The company also agreed to cancel 2.1 crore ESOPs granted/vested and non-exercised by Vijay Shekhar Sharma and over 2.22 lakh ESOPs granted but not exercised by his brother Ajay Shekhar Sharma.

Shares of Paytm surged over 4% on Monday following a broad based rally in markets. Paytm currently has a market capitalization of Rs 55,000 crore. In the quarter ending December 31,2024 Paytm generated a revenue of 1,491 crore compared to Rs 1,265 crore in the previous quarter. In the December quarter, Paytm made a net loss of Rs 205 crore against Rs 821 crore profit in the September quarter, stock exchange data showed.