Alibaba sells Paytm stake worth US$125m via block deal, says source
CHINA’S Alibaba Group sold a 3.1 per cent stake in Indian digital payments firm Paytm for a total of US$125 million through a block deal on Thursday (Jan 12), a source with direct knowledge of the matter said.
Shares of the company fell as much as 8.8 per cent to 528 rupees (S$8.61) in afternoon trading, and was down 5.8 per cent as at 3 pm Indian Standard Time.
The source, who requested anonymity, said that Alibaba sold the stake at 536.95 rupees per share. It held a 6.26 per cent stake in Paytm as at end-September.
The source added that Morgan Stanley advised Alibaba on the deal. Neither Morgan Stanley nor Alibaba responded immediately to requests for comments.
Paytm’s stock has risen 9 per cent this year after reporting strong preliminary figures for its third quarter. It closed 2022 with a 60 per cent loss, despite the company announcing a share buyback in December.
Formally known as One97 Communications, Paytm listed in 2021 after a mega US$2.5 billion initial public offering (IPO).
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Since then, the stock has plunged around 75 per cent from its IPO offer price as investors started questioning the company’s monetisation plans. This was amid worries about sky-high valuations of tech companies and fears of a global economic recession.
In November, SoftBank Group sold a 4.5 per cent stake in the e-payments firm worth US$200 million. It had a 17.5 per cent stake in Paytm as at Sep 30. REUTERS
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