However, Alibaba Group firm Ant Financial has not diluted its stake in Paytm and continues to hold 25% of the company. , Photo Credit: Balaji WS 463@Chennai
Chinese conglomerate Alibaba has sold 3.1% stake in digital financial services firm One97 Communications – nearly half of its direct stake – in a sign of exit from the Indian market, sources said on Wednesday.
However, Alibaba Group firm Ant Financial has not diluted its stake in Paytm and continues to hold 25% of the company.
“There was a huge movement in Paytm stock today as a block deal took place, where 2,59,930 shares were sold at ₹535.90 for ₹13.93 Crore. Behind the deal is Chinese conglomerate Alibaba, which is selling up to 3.1% of its total equity. 6%,” a source closely following the development at Paytm told PTI.
The development follows Alibaba’s stake sale in BigBasket and Zomato. “It looks like Alibaba is exiting India as it has sold shares in other investments,” the source said.
The company’s stock closed at ₹542.25 per share on BSE, showing a decline of 6.43%.
Paytm shares gained after its associate Paytm Payments Bank got RBI nod to appoint Surinder Chawla as its Managing Director and CEO.
Email queries sent to Alibaba and One97 Communications did not immediately elicit a response.