Paytm shares are under pressure, with block trades affecting up to 1.1% of equity

Paytm shares faced pressure as three block trades, totaling up to 1.1 percent of equity or approximately 72.5 lakh shares, were reportedly transacted, according to a Bloomberg report. The identities of buyers or sellers were not immediately disclosed.

One 97 Communications’ shares experienced a decline with significantly higher trading volumes, exceeding 3.2 times the three-month average. This decline marked the second consecutive day of losses. Year-to-date, the shares have plummeted by over 35 percent and are down by more than 50 percent compared to a year ago.

The company made headlines after food delivery platform Zomato confirmed on June 16 to the exchanges that it is in talks to acquire Paytm’s movie-ticketing and events business. Zomato said in a statement that while it is true that the company is in talks with Paytm about the purchase, no final decision has been made yet that would require Board approval and subsequent disclosure under applicable laws.

Paytm shares

This development led to a gap-up start in Paytm shares on June 18, surging by as much as 4 percent to Rs 442 in early trading. Zomato shares also saw an uptick in trading, though the response seemed to be measured.

A block trade in Paytm shares was also reported on May 31, involving 75.20 lakh shares, equivalent to a 1.2 percent stake in the company. Before this, the fintech player issued a clarification denying any talks with Gautam Adani for a stake sale in its parent company, One97 Communications. The Adani Group also refuted these media reports, categorically dismissing them as baseless speculation.

Also Read: HFCL shares

On May 22, One 97 Communications Ltd, the parent company of Paytm, reported a net loss of Rs 550 crore in Q4FY24, marking a 3.2x increase compared to a year ago. This loss was attributed to margins taking a hit following RBI’s curbs on its associate company, Paytm Payments Bank (PPBL).