Global Markets
Home›Global Markets›Asia›Elevation to sell Paytm stake in block deal after bonu…
Elevation to sell Paytm stake in block deal after bonus share scrapped
The block sale would move up to 14.9 million Paytm shares, or 2.3% of the company, at a floor price that implies a 4.9% discount to Monday’s close.
LiveMint Markets reports that Elevation Capital and related investors plan to sell shares in Paytm and Meesho through block deals scheduled for the same day.
In Paytm, Saif Partners India IV Ltd, Saif III Mauritius Co. Ltd, and Elevation Capital V Ltd will offer up to 14.9 million shares, equivalent to 2.3% of Paytm. The term sheet sets a floor price of ₹ 1,339.65 per share, implying a 4.9% discount to the ₹ 1,410 closing price in Mumbai on Monday. Sellers are subject to a 60-day lock-up following the trade, according to the article.
The Paytm sale comes days after the company’s board reviewed and then dropped plans for a proposed bonus share issue on 20 July. The board said it decided not to proceed after concluding that prioritizing business growth is in the best interest of shareholders.
The same article says Elevation will also offer shares in Meesho, alongside Peak XV Partners, worth a combined ₹ 1,912 crore, or about $201 million, through a separate block deal. It also notes Paytm’s June-quarter performance, with One 97’s revenue from operations rising 28.0% year-on-year to ₹ 2,448 crore and 8.0% sequentially, and payment services revenue up 33.0% to ₹ 1,384 crore.