Shares of One 97 Communications Ltd., the parent company of the payments platform Paytm, fell as much as 5% on Friday after a large block deal took place in the stock.

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According to data available on the exchanges, 1.6 crore shares of the company worth ₹1,441 crore exchanged hands in the block deal.

The number of shares that exchanged hands amounted to 2.6% of the company's total equity.

The buyers and sellers in the transaction are not known yet.

Paytm was in focus recently after the Reserve Bank of India tightened consumer lending norms, asking banks and NBFCs to set aside higher capital buffers. Analysts at CLSA said that this move could impact the growth of fintech intermediaries like Paytm, but the impact may not be very large.

Jefferies, meanwhile, said that the tightening of norms and raising of interest rates by banks may hurt Paytm's earnings. "Banks may tighten norms/ raise rates; Paytm may see earnings risk if partners tighten."

Paytm has also been named as part of the inclusions in the MSCI Global Standards Index.

A note from IIFL Alternative Research is pegging potential inflows in the stock to be worth $140 million. On the other hand, a note from Nuvama Alternative and Quantitative Research expects the stock to receive inflows worth $162 million.

Shares of Paytm are currently trading 3% lower at 897.85.

(Edited by : Amrita)

First Published:Nov 24, 2023 9:28 AM IST