Paytm block deal: Shares of One 97 Communications Ltd, which operates digital payment app Paytm, are in focus on Friday morning, as Rs 963.60 crore or $100 million worth of Paytm shares are likely to change hands in a block today at around the floor price of Rs 1,120.65 apiece, a 2.99 per cent discount to Paytm's Thursday's closing price of Rs 1,155.30 on BSE. 

Sources told Business Today that up to 86 lakh Paytm shares, accounting for 1.3 per cent of total outstanding shares, would be traded by the way of one or more share sales on the screen-based trading platform of Indian stock exchanges. Selling shareholders include Saif III Mauritius Company Limited, Saif Partners India IV Limited, Elevation Capital V Limited. 

Citigroup Global Markets India Private Limited is 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 revenue grew 18 per cent YoY, underlying growth remained materially stronger on a like-to-like basis, supported by robust payments GMV growth, structurally improving payment processing margins and continued scaling in financial services, said JM Financial.

"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.