Paytm Block Deal: Saif Partners and Elevation Capital to Sell Up to 2.3% Stake for Over ₹2,000 Crore

A block deal worth up to ₹2,021 crore is scheduled for Tuesday in shares of One 97 Communications Ltd., the parent company of Paytm, as early investors Saif Partners and Elevation Capital look to reduce their holdings in the fintech firm. The proposed sale involves up to 2.3% of the company's equity.

The shares are being offered at a floor price of ₹1,339.65 per share, representing a 4.99% discount to the stock's previous closing price. For context, One 97 Communications was listed on Indian exchanges in November 2021 at an issue price of ₹2,150 per share and has traded well below that level for extended periods since. The floor price serves as the minimum bid level for institutional buyers participating in the transaction.

Morgan Stanley is acting as the sole broker for the block deal, which is entirely secondary in nature. This means existing shareholders are monetising a portion of their long-held positions, and no new shares are being issued. As a result, One 97 Communications will not receive any proceeds from the sale, and the transaction will not result in any dilution for existing shareholders.

Saif Partners and Elevation Capital are both long-standing investors in Paytm, having backed the company in its early funding rounds well before its initial public offering. Their partial exit comes against the backdrop of a broader pattern of venture capital and private equity investors gradually monetising positions in India's newly listed technology companies as post-IPO lock-in restrictions have expired. Secondary sales of this type are a common mechanism for such investors to rebalance portfolios or return capital to limited partners.

Block deals of this magnitude on Indian exchanges are typically executed through a special trading window and are restricted to institutional participants.

Source: CNBC-TV18 Markets