Major shareholders exit Paytm as stock surges 23% YTD, even as company focuses on profitability, digital payments, and structural simplification
INR 1,741 Cr Stake Sale Marks Continued Investor Exit
In a significant move, BNP Paribas Financial Markets and Integrated Core Strategies (Asia) have sold shares worth a combined INR 1,740.8 Cr in Paytm, the listed fintech major, via bulk deals.
- BNP Paribas sold 1.05 Cr shares at INR 1,260.06 each, cashing in INR 1,330.7 Cr
- Integrated Core Strategies offloaded 32.55 Lakh shares at INR 1,259.85 apiece, garnering INR 410.1 Cr
Both exits came at a slight discount to the stock’s closing price, with buyers yet to be disclosed.
Elevation Capital’s Recent Exit Adds to Pressure
This development follows closely on the heels of Elevation Capital’s exit just a week earlier.
- Elevation offloaded 1.19 Cr shares in Paytm through two block deals worth INR 1,556 Cr
- The exits reflect a broader investor trend to book profits, spurred by Paytm’s recent share price rally
Paytm stock has risen 40% over the past year, and 23% year-to-date (YTD), driven by improved revenues and operational focus.
Financials: Profit Drops, But Revenue Grows
Despite the optimism in stock performance, Paytm’s bottom line took a hit in Q2 FY26.
- Net profit dropped 98% YoY to INR 21 Cr, compared to INR 930 Cr a year ago
- The decline was due to a one-time impairment of INR 190 Cr linked to its now-defunct First Games joint venture
- However, operating revenue rose 24% YoY to INR 2,061 Cr, and 7% sequentially
This indicates that core operations remain strong, even as the company absorbs legacy costs.
Strategic Focus: Payments, Restructuring & AI
Following RBI’s 2024 crackdown on Paytm’s payments bank arm, the company has pivoted to core payments services and is streamlining operations.
- The board approved an additional INR 2,250 Cr investment in Paytm Payments Services Limited (PPSL)
- Launched UPI support for NRIs, enabling payments through international mobile numbers
- The company is actively simplifying its group structure, improving regulatory compliance, and cutting redundancies
Paytm is also embracing AI-led automation to drive efficiency and reduce costs in the long term.
Why Investors Are Selling Despite Strong Performance
While Paytm’s fundamentals have strengthened, investors like BNP Paribas, Integrated Core Strategies, and Elevation Capital are likely:
- Booking gains from the stock’s significant rally
- Reallocating capital after sustained exposure
- Responding to ongoing regulatory scrutiny and legacy risks
These exits may signal short-term pressure, but the underlying business appears to be on a stable, growth-oriented path.
