Shares of One 97 Communications Ltd (Paytm) fell 3 per cent in Friday's trade amid heavy turnover on BSE in the opening minutes of the session. The Paytm stock declined 2.6 per cent to Rs 1,125.20 apiece, with turnover of Rs 970 crore recorded within the first three minutes of trading. The weakness was likely driven by share sales by exiting shareholders through block deals.

While block deal data will be available after market hours, sources told Business Today that up to 86 lakh Paytm shares, representing 1.3 per cent of the company's total outstanding equity, were slated to be traded today through one or more block deals. The reported selling shareholders included Saif III Mauritius Company Limited, Saif Partners India IV Limited and Elevation Capital V Limited.

The transaction size was pegged at Rs 963.60 crore, or $100 million, with the floor price fixed at Rs 1,120.65 per share, implying a 2.99 per cent discount to Paytm's Thursday closing price of Rs 1,155.30 on BSE.

Citigroup Global Markets India Private Limited was said to be the placement agent.   

The block deals comes as Paytm delivered a steady March quarter, with strong growth offsetting the drag from PIDF discontinuation and pending UPI incentives. 

While reported sales jumped 18 per cent YoY, underlying growth remained materially stronger on a like-to-like basis, supported by robust payments gross merchandise value (GMV) growth, structurally improving payment processing margins and continued scaling in financial services, JM Financial said.

"While we expect CM to remain rangebound 56-57 per cent over the next 4-5 years due to increased promotional spends, AI-led operating leverage will help Ebitda margin expansion. With steady operating performance along with potential regulatory triggers, risk-reward remains favourable. Reiterate BUY with Mar’27 target of Rs 1,490, valuing Paytm at 40x FY28E Ebitda multiple," JM said earlier this month.

MOFSL said Paytm continued to progress steadily toward sustainable profitability, supported by improving operating leverage, while GMV growth remained healthy and resilient. "The company has been able to absorb nearly 30-40 per cent of PIDF-related costs and aims to offset a larger portion in the coming periods," it said. This brokerage on May 7 maintained 'Neutral' and a target of Rs 1,300 on the stock.