One of Paytm's promoter entities controlled by founder Vijay Shekhar Sharma will sell a 4.98% stake in the company through an open market transaction.
The entity, holding 98.5% of Sharma's direct and indirect shareholding in Paytm, plans to divest the stake via block deals or bulk trades, according to a regulatory filing. The transaction will be executed by One97 Communications, Paytm's parent company, which is listed on Indian exchanges.
The proposed sale comes amid a broader restructuring of Sharma's holdings in the digital payments firm. Earlier this year, Sharma reduced his direct stake in One97 Communications to 10.12% from 14.66% through a similar method.
Paytm did not disclose the rationale behind the stake sale or the expected proceeds. The move follows a period of heightened scrutiny over the company's financial performance and governance practices after a regulatory crackdown on its banking unit last year.
Shares of One97 Communications closed 1.8% higher on Friday, reflecting muted investor reaction to the announcement. The stock has declined over 50% in the past 12 months amid competitive pressures and regulatory challenges in India's digital payments sector.
The transaction is subject to regulatory approvals and market conditions.
