BackPaytm share price today tanks on buzz of block deal after rallying for 4 straight trading days
Paytm shares tanked more than 8% to ₹649 apiece on the BSE in Friday's deals
PremiumShares of One 97 Communications Ltd (Paytm) tanked more than 8% to ₹649 apiece on the BSE in Friday's deals on buzz of large block deals. The stock rallied for four straight days till Thursday on the back of reporting a healthy set of Q3 results and major global brokerages turning bullish and raising target price.
2.1 crore shares (3.4% equity) of Paytm have changed hands through block deal on Friday and a report by ANI suggested that Chinese multinational Alibaba has sold its entire stake in Paytm in today's block deal. With this sale, Alibaba is no longer a stakeholder in Paytm. Mint could not independently confirm the developments.
Paytm posted its first-ever quarterly operating profit as a listed firm, ahead of its September 2023 guidance and the company's losses also narrowed during the third quarter of the current fiscal (Q3FY23). The fintech company's net loss in the quarter through December narrowed to ₹392 crore as compared to ₹779 crore a year earlier whereas the leading digital payments brand's revenue from operations rose 42% to ₹2,062 crore.
Earlier this week, the payments and financial services platform shared its business update for the month of January 2023 during which its merchant payment volumes (GMV) stood at ₹1.2 lakh crore, growth of 44% year-on-year (YoY). It disbursed ₹3,928 crore worth of loans for the month of January 2023. The average monthly transacting users (MTU) for January 2023 registered a 29% year-on-tear (YoY) increase at 89 million.
“I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our guidance.. With our focus on growth and keeping a tight vigil on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company," said founder and Chief Executive Officer (CEO) Vijay Shekhar Sharma in a statement.
Paytm share price continues to trade below its initial public offer (IPO) price of ₹2,150 apiece since its listing in November 2021 and had the worst first-year share plunge among large IPOs over the past decade which had been triggered by valuation concerns.
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