Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ News / India/  Alibaba exits Paytm, offloads stake in 1,378-cr block deal
BackBack

Alibaba exits Paytm, offloads stake in ₹1,378-cr block deal

Shares of Paytm slumped by 8.75% to ₹650.20 on Friday on BSE, underperforming the benchmark Sensex’s 0.2% decline

China’s Alibaba Group sold its entire 3.4% stake in One97 CommunicationsPremium
China’s Alibaba Group sold its entire 3.4% stake in One97 Communications

China’s Alibaba Group sold its entire 3.4% stake in One97 Communications, the parent of Indian payments firm Paytm, in a block transaction worth 1,378 crore.

Alibaba sold 21.43 million shares of Paytm at 642.74 apiece to investors, including Morgan Stanley, according to data obtained from the National Stock Exchange.

Shares of Paytm slumped by 8.75% to 650.20 on Friday on BSE, underperforming the benchmark Sensex’s 0.2% decline.

The firm, which held about 6.26% in Paytm until last month, sold a partial 3.1% stake in the stock at a discount of about 7% in open market operations in January. Among the buyers was Morgan Stanley, which bought shares worth 294 crore on 12 January.

About two months ago, Alibaba also sold a 3.07% stake in online food delivery giant Zomato for 1,631 crore via an open market transaction. As of the quarter ended December, the firm now holds about a 3.46% stake in the Gurugram-based firm.

In May last year, Alibaba exited its investment in Paytm Mall for 42 crore. In 2021, the Jack Ma-founded firm sold its shareholding in online grocer Bigbasket to the Tata group.

The firm’s exit comes amid India’s worsening relations with China, with Prime Minister Narendra Modi’s administration tightening the scrutiny on business ties with China.

Last week, Paytm reported its quarter with positive adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of 31 crore in the third quarter of the financial year 2023. Adjusted Ebitda does not account for employee-stock option costs.

The company achieved the adjusted Ebitda profitability three quarters ahead of its forecast. Goldman Sachs raised its 12-month target price from 1,100 last month to 1,120 per share.

The company’s stock has gained over 18.2% in the last five days after the earnings. The digital services firm has been under pressure over the last year to minimize its cash burn and achieve profitability. Its stock has lost over 58% of its value since listing in 2021.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 10 Feb 2023, 11:45 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App