Paytm block deal: The news about the country’s well -known Fintech company Paytm has come out that China’s Ant Group is going to sell its shares. One of the big shareholders of One 97 Communications is Ant Group of China. But, according to the news of Reuters, this Ant Group of China is ready to sell its entire stake to 5.84 percent for Rs 3803 crore i.e. Rs 38 billion through a blog deal on August 5. Significantly, Atifin is a colleague of China’s Alibaba Group. It was earlier also known as Ant Finanneasia.

China’s company will sell stake from Paytm

Within the last two years, many big investors have sold their stake in Paytm, including Japan’s soft bank group and Warren Buffett company Berkshire Hathaway. Goldman Sachs India Securities and City Group Markets India will lead the deal. However, so far no response has been given by Ant Group or Forest 97 Communications.

Ant Finn was continuously decreasing its stake in Paytm for the last two years. Earlier, in May 2023, Ant Group sold its stake of 10.3 percent in May and then in August 2023. According to reports, equity shares worth 3.77 crore will be sold in this deal, which is 5.84 percent of Paytm’s outstanding shares. The floor price has been kept at Rs 1020 per share.

PTM shares boom

During the last one month, Paytm shares have risen by 16.01 percent. On Monday, its stock saw a 0.33 percent increase and during a year it has given a tremendous 116.24 percent of investors.

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Paytm shares: Paytm’s parent company One 97 Communications results came on the quarter July 22 July, in which the company recorded a net profit of Rs 123 crore. A year ago, the company was at a loss of Rs 839 crore during the same period. That is, for the first time after the listing, the company has been told about pure profits during a quarter. But today i.e. on July 23, the stock market saw a decline in Paytm shares and a day after the result, its shares fell 3 percent.

Paytm’s increased profit

Paytm Ebitda (Operating Profit) has been Rs 72 crore during the quarter of FY 2025-26. If you compare both the previous quarters, then the company was in the operating profit deficit. With this, revenue has increased to 1917.5 crores i.e. 28 percent. Global brokerage firm on Paytm’s shares has increased the ratings to ‘bye’. Its target price has been increased to Rs 1250. On Monday, PTM’s closed market price was Rs 1051, compared to that it increased by 19 percent.

132% jumped shares in a year

Paytm’s stock has seen a jump of about 132 percent in a year. Global firm Bernstein has also set a target price of Rs 1100, advising Paytm shares. Along with this, its stock has been given a rating of outperform. However, McWery has given the target price of Paytm shares below the current level i.e. Rs 760, giving it the rating of the underpaper.

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Paytm share falls: An explanation was given by the Finance Ministry that MDR i.e. merchant discount rate will not be charged on any transaction of UPI. As soon as this statement came from the ministry, Paytm’s shares fell down. One 97 is the parent company of Paytm, 97 Communications. However, after that statement of the Ministry of Finance, Paytm’s stock has been seen on Thursday by 10 percent.

Paytm’s stock on BSE has fallen by 6.13 percent to 901.30 on Thursday. Earlier in the year 2024, on December 17, Paytm shares were Rs 1063, while on June 12, they came to Rs 376,85.

What did the Finance Ministry say?

In fact, some such reports came out in which it was being claimed that the government is thinking of implementing MDR on 3000 or more transactions to help banks and payment solutions provider. The report said that the banks can be approved by the Finance Ministry to impose MDR on the transaction value in lieu of merchant turnover. For this reason, Paytm shares jumped and a record reached 978.

In the clarification of June 11, issued by the Finance Ministry, it was said that MDR or any kind of UPI transaction will not be applicable on UPI transactions. Also, the claims were declared misleading and completely wrong. This clarification was issued by the Finance Ministry after the stock market was closed.

It is worth noting that the fees charged from the merchants for processing of payments in real time on behalf of the bank are called MDR. The MDR fee was abolished in the year 2020 for the expansion of digital services in the country by the government. However, this year the government was asked by the Payment Counsel of India to rethink Zero MDR again on UPI transactions.

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