Paytm shares gain over 3% in early trade amid buzz on block deals

Paytm shares rose over 3 percent in early deals on February 27 amid news reports that said SoftBank and Ant Group were seeking to reduce their stakes in the company while Sunil Mittal-owned Bharti Group was looking to grab some shares in the fintech company.

Reports suggested the Bharti Group was seeking to buy Paytm shares from other holders through a stock deal in a bid to fold Airtel Payments Bank into Paytm Payments Bank.

However, a representative of Paytm clarified to Moneycontrol that talks between the two companies have collapsed as the former declined to give up management control. The fintech giant didn’t see a strategic alliance in the payments business due to differences in the business model, they said.

“While we don’t typically comment on market speculation, we can confirm that we remain fully focused on our strong organic growth journey and are not involved in any such discussions,” a representative for Paytm said.

Following the clarification, shares of Paytm pared some of their early gains. At 10.23 am, shares of Paytm were trading at Rs 632 on the National Stock Exchange, up 1.36 percent. The stock had risen to an intraday high of Rs 656.30 earlier in the day.

Catch up on all LIVE stock market updates here

On the other hand, news reports also said that China’s Ant Group and Japan’s SoftBank Group were looking to sell their stake in the fintech company through block deals.

Meanwhile, Paytm posted its first-ever operating profit in the October-December period, three quarters before its guidance. The company’s net loss also narrowed in the third quarter while revenue rose 42 percent on year-on-year.

Most brokerages have also turned bullish on the stock given a moderation in its valuations and its efforts towards profitability.