Paytm share price falls over 4% on block deal buzz
₹880.00 apiece on the BSE. According to media reports, a large block deal took place in the shares of One 97 Communications, the parent company of fintech major Paytm. Around 1.6 crore Paytm shares, or 2.56% of the equity, changed hands in the trade, reports said.
The transaction took place at an average price of ₹884 per share taking the total deal value to ₹1,441 crore. The details of the buyers and sellers of Paytm shares in the block deal are not available yet. Also Read: Mamaearth-parent Honasa Consumer soars over 14% on strong Q2; up 37% in 2 sessions Paytm shares have seen a decent rally this year as the stock is up around 70% year-to-date (YTD).
Moreover, Paytm share price has doubled in the past one year period. The rally in Paytm shares comes on the back of improving operating performance of the company with analysts expecting the fintech giant to turn profitable soon. Foreign brokerage firm Jefferies expect Paytm to to turn profitable in the next four quarters and be amongst the few large profitable fintechs globally that enjoy strong growth, double-digit EBITDA margins and stable profitability.
(Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Meanwhile, on November 16, the Reserve Bank of India (RBI) increased the risk weight on consumer loans of banks and non-bank financial companies (NBFCs) by 25%, which will lead to a rise in their cost of funds. BofA Securities expects the new RBI regulations to also impact Paytm, with risks to loan growth estimated on personal loan or some pressure on take-rates. The overall impact is likely lower than 5% on FY25E EBITDA, while Paytm’s pace of signing-up incremental
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