Three Big Investors Brace for Exit: Paytm Block Deal Set to Offload Up To ₹2,002 Crore in Shares
Three significant early investors are preparing to sell a substantial block of shares in One 97 Communications, the parent company of Paytm. The screen-based transaction is structured as a 100% secondary share sale through Indian stock exchanges, meaning the company itself will not receive any proceeds from this deal.The sale includes shares held by Saif Partners India IV, Saif III Mauritius Company, and Elevation Capital V. This large-scale exit offers institutional buyers an opportunity to acquire a significant quantity of Paytm's equity in one go.
Details of the Block Share Sale
The current transaction offers up to 1.49 crore base shares for sale, representing approximately 2.3% of Paytm’s existing share capital. The potential value of this offer reaches up to Rs 2,002 crore, which equates to about $210 million.Morgan Stanley India Company Pvt Ltd is serving as the placement agent for this high-profile transaction. Books opened on August 3 and are scheduled to close around 7 am IST on August 4, with an early closure option available. The trade date is set for August 4, followed by settlement on August 5.
Discounted Exit for Key Early Investors
The offer floor price has been fixed at Rs 1,339.65 per share. This pricing reflects a 4.99% discount when compared to Paytm's closing price of Rs 1,410 on August 3.The term sheet specified that definitive guidance on the final pricing will only be provided after the shares are crossed on Indian exchanges on August 4. Sellers and their nominees must indicate demand across the stated price range.
Significant Holdings Before the Transaction
Prior to this proposed sale, Saif Partners India IV held a considerable stake of 23.2 million Paytm shares, equivalent to around 3.63% of the company’s existing capital. Saif III Mauritius Company had an even larger position, holding about 54.7 million shares or 8.55%.The holdings and ownership structure were disclosed on BSE on August 3. Although Elevation Capital V's specific stake was not detailed in the term sheet, it is noted that large investor exits through block deals are a common occurrence following strong market rallies.
Vendors involved in this sale, along with their associated agents and nominees, are required to adhere to a 60-day lock-up period post-transaction.
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