Paytm slumps 8% as large block deals take place on bourses

Around 2.1 crore shares of Paytm, which represents 3.4 percent stake in equity, changed hands through block deal.

Shares of Paytm parent One 97 Communications slumped more than eight percent on February 10 after large block deals took place on the bourses, reported CNBC-TV18.

Around 2.1 crore shares of Paytm, which represents 3.4 percent stake in equity, changed hands through block deal. The buyer and seller could not be ascertained immediately.

At 9:50 am, shares of the company were trading 6.5 percent lower at Rs 666.4 on the BSE.

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Earlier this week, the Paytm parent reported its quarterly numbers. Revenue surged 41 percent to Rs 2,062 crore in the December quarter as compared with the year-ago period, while net loss narrowed to Rs 392 crore.

The digital payments and financial services company’s loss in the corresponding period last year was Rs 778 crore, whereas it stood at Rs 572 crore in the September quarter.

In a letter to shareholders, Paytm founder and chief Vijay Shekhar Sharma said the company had achieved operating profitability in Q3, which is three quarters ahead of the guidance which was for the September quarter.

Goldman Sachs had said it expects profit to sustain along with strong traction in disbursals, operating leverage and UPI reimbursement, while it has also raised its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) estimate by 30 percent and 14 percent for FY24 and FY25, respectively, on the back of significantly stronger Q3.