One 97 Communications, the parent company of Paytm, is expected to see China’s Ant Group fully exit the Indian payments firm. According to sources cited by NDTV Profit, Chinese e-commerce major Alibaba group firm Antfin plans to sell its remaining 5.84% equity stake in Paytm through block deals on Tuesday, with the transaction estimated to be worth around ₹3,845 crore.

The floor price has reportedly been fixed at ₹1,020 per share, representing a 5.4% discount to Paytm’s last closing price of ₹1,078.20 on August 4 on the NSE.

As of the June quarter, Antfin (Netherlands) Holding B.V. held a 5.84% stake, or 3.77 crore shares, in the company, according to exchange data. Antfin has been steadily trimming its stake in the fintech major in recent quarters, having sold a 4% stake in May. Foreign investors currently hold the largest stake in the company at 54.9%, followed by general shareholders, who collectively own a 29.3% stake.

This development comes at a time when Paytm’s stock has been on an upward trend, closing each of the last five months in positive territory and delivering a stellar gain of 52%.

Even as the broader Indian stock market remained under significant pressure in July, Paytm’s stock closed the month with an 18% gain, marking its largest monthly rise since November 2024. After nearly six months, the stock crossed the ₹1,000 mark in mid-July, fueled in part by reports of its potential inclusion in the MSCI Standard Index.

Meanwhile, Mutual funds have shown growing confidence in the company’s growth prospects. According to the latest shareholding data for Q1FY26, domestic mutual funds collectively held a 13.86% stake in Paytm, up from 13.11% in the March quarter.

Posts first-ever profit in Q1

The company ₹122.5 crore in the quarter ended June 2025″>reported its first-ever consolidated net profit of ₹122.5 crore in the quarter ended June 2025, driven mainly by cost optimization and an increase in payment revenue.

Marketing and promotional expenses were cut by more than half to ₹99.8 crore during the reported quarter, down from ₹221.4 crore a year ago and ₹142.7 crore in the March 2025 quarter. Employee benefit expenses were also reduced by about ₹300 crore, or one-third, to ₹643 crore from ₹952.5 crore on a year-over-year basis.

Consolidated revenue from operations in the reporting quarter rose about 28% to ₹1,917.5 crore from ₹1,501.6 crore in the June 2024 quarter, mainly due to improved payment processing margins. During the quarter, Paytm reported that its average monthly transacting users (MTU) base reached 7.4 crore.

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