Paytm, Nykaa shares drop on the back of block deals
Shares of payments company Paytm and beauty retailer Nykaa took a hit on the back of block deals. According to reports, Ant Financial sold nearly 3% shares in Paytm.
Shares of parent One 97 Communications fell by 6.43% at the end of the day’s trade on Thursday to Rs 542.25 per share in the backdrop of a large block deal with a spurt of 22.17 in volume trade. The previous day’s close was at Rs 579.50 per share.
Ant Financial, the financial services affiliate of Alibaba Group, sold two crore shares, or nearly 3% stake in the block deal, as per reports. Antfin (Netherlands) Holding BV, a subsidiary of Singapore-headquartered Ant Financial held 164.42 million shares in or 24.89% stake in the company as on March 31, 2022.
In December last year Paytm had announced buyback of equity shares worth Rs 850 crore at a maximum price of Rs 810 per share. Since then, the firm's shares have fallen nearly 74.5% from its IPO price of Rs 2,150.
On Monday, Paytm announced that its loan distribution surged by 357% for Q3 of FY23 at Rs 9,958 crore. The platform registered 38% growth in merchant payment volumes for the quarter.
Meanwhile, Beauty retailer —owned by FSN E-commerce—fell by 3.45% to Rs 149.75 per share at the end of the day’s trade on Thursday from the previous day’s close at Rs 155.10. This followed a reported block deal of 1.4 crore shares to raise $26 million, priced at Rs 148.90 per share, according to Bloomberg.
The retailer's shares have nearly halved, falling by 55% over the last year.
Nykaa last saw three entities, including Lighthouse India Fund III offload shares worth Rs 491 crore in the company in a block deal in November last year. Nykaa registered Rs 5.2 crore in consolidated net profit for Q2 of FY23.
Edited by Akanksha Sarma
