Paytm plunges 5% after 2.5% stake in One97 Communications changes hands

Around 1.6 crore shares or 2.56 percent stake of the company worth Rs 1441 crore changed hands

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Shares of Paytm owner One97 Communications Ltd plunged nearly 5 percent following a huge block deal. Around 1.6 crore shares or 2.56 percent stake of the company worth Rs 1,441 crore changed hands at an average price of Rs 884 a share, CNBC-TV18 reported.

Details of the buyers and sellers were not known immediately.

The stock hit a low of Rs 880 a share and declined as much as 4.6 percent intraday. At 10.20am, the scrip was trading at Rs 898 a share, down 2.7 percent from its previous close.

Recent RBI regulations impacting consumer lending norms have brought Paytm into focus. CLSA analysts believe this may affect fintech intermediaries like Paytm, but the impact might not be significant. Jefferies suggests that tightened norms and raised interest rates by banks could affect Paytm's earnings due to possible partner restrictions.

Additionally, Paytm's inclusion in the MSCI Global Standards Index has drawn attention, with IIFL Alternative Research estimating potential inflows of around $140 million, while Nuvama Alternative and Quantitative Research anticipates inflows worth $162 million into the stock.

On October 20, Paytm disclosed a Q2 FY24 consolidated revenue of Rs 2,519 crore, marking a 32 percent increase from Rs 1,914 crore last year. This surge was driven by improved payment processing margins and loan disbursement growth.

Losses reduced to Rs 292 crore from Rs 571 crore in the previous financial year, with direct expenses at Rs 1,093 crore in Q2 FY24. Compared quarterly, there was a 7 percent revenue increase to Rs 2,341 crore from Rs 2,184 crore recorded in Q1 FY24, with a loss of Rs 358 crore during this quarter.

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