Antfin (Netherlands) Holding B.V., which is considered a Chinese entity as it is backed by Alibaba, is understood to have undergone a clean-up trade in Paytm this morning. It had appointed Goldman Sachs and Citi for the bulk deal, which was executed at a floor price of Rs 1,020 per share, market sources said.
Following the deal, Paytm shares fell up to 1% to Rs 1,058 on BSE, but brokerages said the stock can also get some buoyancy considering the end of the Chinese overhang and could even be a precursor to the company receiving certain regulatory approvals.
Antfin is the last remaining Chinese shareholder, and now Paytm will no longer have any Chinese ownership.
“With the long-standing overhang from a major Chinese investor now removed, Paytm’s stock could see a positive reaction as ownership concerns ease and supply pressure decreases. Such clean-out trades often provide clarity to the market, allowing investors to refocus on fundamentals and future growth. The exit also aligns the cap table more closely with regulatory expectations, which could be viewed favourably in the context of Paytm’s pending payment aggregator license,” said JM Financial‘s Sachin Dixit.
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With the exit of Antfin, Paytm’s pre-IPO cap table has seen a near-complete churn. Major early backers, including Alibaba, SoftBank, and Berkshire Hathaway, have all exited fully over the past two years. Elevation Capital (formerly SAIF Partners) now stands as the only significant pre-IPO investor still holding a stake of 15.4% as of June 2025.”The current block deal removes Antfin from Paytm’s cap table entirely, reducing its holding to zero. This exit aligns with broader regulatory and geopolitical dynamics with a more India-dominated shareholding structure as the company has faced scrutiny in the past over foreign ownership and data localisation concerns,” JM Financial said.Also Read | Paytm Q1 Results: Co swings to black, logs Rs 122 crore profit vs YoY loss; revenue jumps 28%
As far as Paytm’s operating performance is concerned, the fintech has seen a sharp reversal from the regulatory disruption in January 2024 to report PAT profitability in Q1FY26.
Furthermore, the improvement in contribution margin (mid-high fifties) along with a controlled rise in indirect expenses can potentially trigger a rapid rise in absolute profits for the company, with focus reverting to sustainable growth, it said.
Last month, Jefferies had upgraded Paytm shares to ‘Buy’ and raised the target price to Rs 1,250 per share. The stock has more than doubled in the last year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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