Chinese fintech giant Antfin is likely to divest up to 4% of its stake in digital payments firm Paytm through block deals valued at ₹2,066 crore, sources privy to the developments told CNBC-TV18.
The floor price for the transaction is set at ₹809.75 per share, representing a 6.5% discount to Paytm’s current market price, according to multiple people familiar with the development.
Last week, Paytm’s parent, One97 Communications Ltd, reported a net loss of ₹544.6 crore, narrowly down from ₹550.5 crore during the same quarter last year. The company reported a net loss despite its other income increasing by nearly ₹100 crore from last year to ₹223.8 crore. Paytm had reported another income figure of ₹131.7 crore in the base quarter.
Also Read: Paytm shares surge 6% after Q4 results, analysts see stock testing ₹1,200 levels
Paytm’s net loss is contrary to expectations of brokerages like JM Financial and Yes Securities, who had expected a net profit of ₹3.6 crore and ₹4.5 crore, respectively for the quarter. The loss is also higher than the Motilal Oswal estimate of ₹112 crore.
Revenue for the quarter declined by 15.7% from the same quarter last year to ₹1,912 crore. JM Financial had expected the revenue figure to be ₹1,975 crore, while Motilal Oswal had projected the figure to be at ₹2,098 crore.
Paytm reported an earnings before interest, tax, depreciation and amortisation (EBITDA) before employee stock options (ESOP) of ₹81 crore, which is an improvement of ₹135 crore from the December quarter, according to its earnings release.
Also Read: Paytm founder Vijay Shekhar Sharma settles ESOP violation case with SEBI
Shares of One 97 Communications Ltd ended at ₹866.35, up by ₹33.80, or 4.06%, on the BSE.
(Edited by : Shoma Bhattacharjee)
