Early Investors to Unload $110 Million in Paytm Shares via Block Deal
Early Investors in Paytm Look to Offload Shares Worth $110 Million
Mumbai: In a move that marks another step in the gradual exit of Paytm's early backers, Saif III Mauritius Company Limited, Saif Partners India IV Limited, and Elevation Capital V Limited are planning to sell up to 8.6 million shares of One 97 Communications, the parent company of fintech major Paytm, through a block deal on Friday.
According to a term sheet reviewed by Mint, the proposed transaction involves the sale of shares worth around $110 million at a floor price of ₹1,120.65 per share. This represents a discount of about 2.99% to Thursday's BSE closing price of ₹1,155.30. At the floor price, the total transaction size is estimated at around ₹963.6 crore.
| Seller | Number of Shares | Percentage of Outstanding Share Capital |
|---|---|---|
| Saif III Mauritius Company Limited | Up to 8.6 million | 1.3% |
| Saif Partners India IV Limited | Up to 8.6 million | 1.3% |
| Elevation Capital V Limited | Up to 8.6 million | 1.3% |
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Citigroup Global Markets India Pvt. Ltd. is acting as the placement agent for the deal. The proceeds of the deal, which is secondary in nature, will go entirely to existing investors and not the company. The term sheet also specifies a 30-day lock-up period on the residual stake held by the vendors after the transaction.
The books for the deal are expected to close around 7:30 am IST on 22 May, with trade execution slated for the same day and settlement expected on 25 May. This marks another step in the gradual exit of Paytm's early backers, years after the company's blockbuster but volatile market debut in 2021.
Paytm's Chinese affiliate Antfin, once its largest shareholder, has steadily reduced its holding over the past two years amid heightened regulatory scrutiny around Chinese ownership in Indian fintech firms. In 2023, Antfin transferred a 10.3% stake to founder Vijay Shekhar Sharma, helping bring its shareholding below the 10% threshold. In May 2025, it sold another 4% stake through a $246 million block deal.
Regulatory concerns around Paytm Payments Bank and delays in securing key licences had earlier weighed heavily on the stock. However, sentiment has improved sharply over the past year after Paytm returned to profitability and rebuilt its payments business following the RBI crackdown on its banking arm.
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Investor Takeaway
Existing investors in Paytm may sell shares, potentially impacting the stock price.
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