Alibaba exits India, sells entire stakeholding in Paytm; shares down by 8%

Alibaba exits India, sells entire stakeholding in Paytm; shares down by 8%

According to sources with knowledge of the matter, Chinese giant Alibaba sold all of its stock in Paytm in today's block transaction. With this transaction, Alibaba lost its ownership of Paytm. In January, the business sold about 3.1% of the 6.261% stock in Paytm.

FPJ Web DeskUpdated: Friday, February 10, 2023, 03:05 PM IST
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Alibaba exits India, sells entire stakeholding in Paytm; shares down by 8% | Image: Alibaba, Paytm (Representative, edited: FPJ)

In a block deal, 3.4 per cent equity (or 2.1 crore shares) of Paytm's parent company One97 Communications Ltd (OCL) changed hands on Friday.

Alibaba and Paytm

According to sources with knowledge of the matter, Chinese giant Alibaba sold all of its stock in Paytm in today's block transaction. With this transaction, Alibaba lost its ownership of Paytm.

In January, the business sold about 3.1% of the 6.261% stock in Paytm.

Paytm shares see decline on Friday

The stock price of Paytm fell over 8 per cent to Rs 653.5 on Friday. After seeing green in the market for the last four days and a healthy December quarter, the shares began to drop on Friday. At 3:03 pm, the shares were trading at Rs 650, down by 7.93 per cent.

Alibaba's exit from India

Since Alibaba had already sold its shares in Zomato and BigBasket, this most recent agreement almost marks the end of its presence in India.

As the Chinese ownership of the domestic Paytm has ended, the news will boost the market.

Paytm's shares have been rallying in the last few days since it announced operating profitability in its Q3FY23 results with EBITDA before ESOP cost at Rs 31 crore, significantly ahead of its guidance of September 2023.

Alibaba's operational revenue

The fintech giant's operational revenue grew to Rs 2,062 crore (no UPI incentive was recorded this quarter), up 42% annually. The comprehensive operating update for January 2023 that Paytm filed with the stock market on February 8 came next.

The company's vital lending and payments businesses have continued to experience consistent growth momentum.

With the deployment of 6.1 million devices, Paytm strengthened its dominance in offline payments, and its average MTU, at 89 million, saw a growth of 29% for the month of January 2023.

With inputs from Agencies.

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