Paytm Shares Drop as Antfin Sells 4% Stake, Despite Q4 FY24 Growth
- Over 4% equity in Paytm sold via block deals worth Rs 2,066 crore, likely by Antfin, at a floor price of Rs 809.75 per share, a 6.5% discount to the last close.
- Paytm shares fell nearly 4% to Rs 830.55 on May 13, trading 2.1% lower at Rs 847.6 at 9:20 am; the stock is up 12.5% in the last six months.
- Q4 revenue down 15.7% YoY to Rs 1,912 crore, other income at Rs 223.8 crore, net payment margin at Rs 578 crore, GMV at Rs 5.1 lakh crore, merchant base at 1.24 crore.
Paytm shares declined on Tuesday, May 13, following more than 4% of the firm's equity trading hands in early trade via block deals. According to a report by CNBC-TV18, citing sources, Antfin is presumably the seller, selling as much as 4% of its holding in the digital payments company. The sale of the stake, which was estimated at Rs 2,066 crore, was apparently done at a floor price of Rs 809.75 a share, or 6.5% below the last closing price.
Paytm's share fell to an intraday low of Rs 830.55, down by almost 4%, before easing back to Rs 847.6 each, still 2.1% down, at 9:20 am. Even with the decline, the stock has risen 12.5% in the last six months.
The sale of stakes comes after the company reported Q4 FY24 earnings, with revenue dropping 15.7% year-on-year to Rs 1,912 crore. Other income was up at Rs 223.8 crore from Rs 131.7 crore in the previous year. Net payment margin was at Rs 578 crore due to UPI incentives, and the processing margin excluding UPI incentives was above 3 basis points.
Paytm's gross merchandise value (GMV) during the quarter was Rs 5.1 lakh crore. The number of merchants accepting its payment devices increased to 1.24 crore, with 8 lakh additions over the last quarter.
