Chinese e-commerce major Alibaba group firm Antfin is likely to sell Patym shares worth Rs 2,200 crore through block deals, as per a termsheet seen by Moneycontrol on May 12.
The Alibaba entity is likely to sell nearly 4% stake in the fintech firm at floor price of Rs 809.75 per share. The floor price represents 6% discount to the closing price of the Paytm stock on May 12.
As of March quarter, Antfin (Netherlands) Holding B.V. held 9.85% stake in One 97 Communications Ltd, the parent firm of Paytm, shows exchange data.
Citi and Goldman Sachs are the investment banks working on the proposed block trade.
Paytm expects to become profitable from the first quarter of the current fiscal year, it said last week, after posting a narrower sequential loss excluding a one-time charge.
"We are at the verge of PAT (profit after tax) profitability... I'm very sure that in (the) next quarter onwards, if everything goes as we are seeing, it could very well be a profitable quarter," Founder and CEO Vijay Shekhar Sharma said in a post-earnings call.
The digital payments company reported a loss of Rs 540 crore for the three months ended March 31 compared with a loss of Rs 208 crore in the previous quarter, hurt by a charge from employee stock options.
Sharma gave up ESOPs in the reported quarter, triggering a one-time charge of Rs 492 crore.
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