Early investors in One97 Communications, the parent company of Paytm, are planning to sell shares worth up to ₹2,021 crore through a large block deal, marking another significant secondary transaction in the fintech company’s stock. The proposed sale is being led by SAIF Partners and Elevation Capital, two of Paytm’s earliest backers, and is expected to take place through the stock exchanges on August 4, 2026. The transaction is entirely secondary in nature, meaning Paytm will not receive any proceeds from the sale.
According to a term sheet accessed by CNBC-TV18, the investors plan to offload up to 1.49 crore equity shares, representing around 2.3% of Paytm’s outstanding equity. The shares are being offered at a floor price of ₹1,339.65 per share, nearly 5% below Paytm’s closing price of ₹1,410 on Monday, a discount commonly used to attract institutional investors in large block deals. Morgan Stanley is acting as the sole placement agent for the transaction.
SAIF Partners and Elevation Capital to Sell Paytm Stake
The selling shareholders include:
- SAIF Partners India IV
- SAIF III Mauritius Company
- Elevation Capital V
Before the proposed transaction:
- SAIF Partners India IV held approximately 3.63% of Paytm.
- SAIF III Mauritius Company owned around 8.55% of the company.
- Elevation Capital V is also participating in the secondary sale.
Block Deal Snapshot
| Item | Details |
|---|---|
| Company | One97 Communications (Paytm) |
| Deal Size | Up to ₹2,021 crore |
| Shares Offered | Up to 1.49 crore shares |
| Stake Being Sold | Around 2.3% |
| Floor Price | ₹1,339.65 per share |
| Discount | Approximately 5% to previous close |
| Placement Agent | Morgan Stanley |
Entire Transaction Is Secondary
The proposed share sale is 100% secondary, meaning:
- The proceeds will go entirely to the selling investors.
- Paytm will not raise fresh capital.
- There will be no dilution of existing shareholders’ ownership.
Secondary transactions of this nature are common when early venture capital investors monetize part of their holdings after a company has matured and become publicly listed.
Another Exit for Early Investors
Elevation Capital has been active in other secondary sales too, having recently joined Peak XV in selling a 2.27% stake in Meesho for ₹1,949 crore.
The planned sale follows earlier stake reductions by SAIF Partners and Elevation Capital over the past year as they gradually monetize their long-held investments in Paytm.
Venture capital funds typically return capital to their investors after portfolio companies mature, making partial exits through block deals a routine part of the investment lifecycle.
What It Means for Paytm
Large block deals by early backers have been common across Indian startups this year, including TPG selling Shadowfax shares worth ₹301 crore in a bulk deal.
While large block deals can temporarily weigh on a company’s share price because of the discounted sale price, they do not necessarily indicate concerns about the company’s fundamentals.
For Paytm:
- The company receives no funds from the transaction.
- Daily operations and business strategy remain unchanged.
- The sale primarily reflects portfolio management decisions by long-term financial investors.
Institutional block deals also tend to improve stock liquidity by increasing the free float available in the market.
Looking Ahead
The proposed ₹2,021 crore block deal represents one of the largest recent secondary transactions in Paytm shares, as early investors SAIF Partners and Elevation Capital continue monetizing their investments following the company’s public listing. With Morgan Stanley managing the offering and the shares priced at a modest discount to the market price, the transaction is expected to attract institutional investors seeking exposure to India’s fintech sector.
Looking ahead, market participants will closely monitor investor demand for the block deal and its short-term impact on Paytm’s share price. While the sale may create temporary pressure on the stock due to the discounted pricing, it does not alter Paytm’s business fundamentals, as the transaction is purely a transfer of ownership between existing and new shareholders rather than a capital-raising exercise by the company.
Frequently Asked Questions
Who is selling the Paytm stake and how much is the deal worth?
Early investors SAIF Partners and Elevation Capital are planning to sell shares worth up to ₹2,021 crore, representing about a 2.3% stake in Paytm’s parent, One97 Communications.
Will Paytm receive proceeds from this stake sale?
No, the transaction is entirely secondary in nature, meaning Paytm itself will not receive any proceeds from the sale.
When is the Paytm block deal expected to take place?
The sale is expected to take place through the stock exchanges on August 4, 2026.
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