Alibaba Sells 3.1% Stake In Paytm: Report The report further added that shares of the company fell as much as 8.8% to 528 rupees in afternoon trading, and was last down 5.8% as of 3:00 p.m. IST
By Teena Jose
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China's Alibaba Group sold a 3.1% stake in Indian digital payments firm Paytm for a total of $125 million through a block deal on Thursday, according to a report by Reuters, citing a source with direct knowledge of the matter. The report further added that shares of the company fell as much as 8.8% to 528 rupees in afternoon trading, and was last down 5.8% as of 3:00 p.m. IST.
A source closely watching the development at Paytm as quoted in a PTI report was saying, "There was a big movement in Paytm's stock today as a block deal took place where 2,59,930 shares were sold at INR 535.90 worth 13.93 crore rupees. Chinese group Alibaba is behind the deal, selling up to 3.1 per cent of its total equity of about 6%. Alibaba seems to be making an exit from India as it has sold shares in other investments."
Post the latest transaction, Alibaba's total shareholding has decreased to 28.19 per cent from 31.14 per cent stake in the company. On Thursday, Morgan Stanley Asia (Singapore) Pte ODI and Ghisallo Master Fund LP acquired a total of 1.04 crore Paytm shares at an average price of INR 534.8 per piece. Shares of Paytm closed 6.16 per cent lower at INR 543.50 on NSE, stated the report.
Formally known as One97 Communications, Paytm listed in 2021 after a mega $2.5 billion initial public offer (IPO). Since then, the stock has plunged around 75% from its IPO offer price as investors started questioning the company's monetization plans amid worries about sky-high valuations of tech companies and fears of a global economic recession, as per the report.
