Alibaba sells $125 million stake in Paytm through block deal

Tags: Economics/Business

Alibaba Group has sold its majority stake of 3.1% in Paytm's parent company One-97 Communications.

• Ant Financial, a company of Alibaba Group, has sold shares of Paytm worth $ 125 million, or about Rs 1,125 crore, through a bulk deal.

• Alibaba Group company Ant Financial has sold 2 crore shares of Indian Digital Payment and Financial Services Company Paytm at Rs 536.95 per share.

• Earlier, Alibaba Group had 6.26% stake in Paytm.

• Paytm shares fell 6.16%, or Rs 35.65, to close at Rs 543.50 after Alibaba's stake sale.

• Paytm's IPO of $ 2.5 billion i.e. Rs 20,361 crore was presented in November 2021. At that time it was the biggest IPO in the country.

• What is block deal?

• Block deal refers to a trade in which 500,000 shares or shares of a particular company listed on the exchange are traded for a value of more than Rs 5 crore.

• Block deals can only be conducted during a particular trading window in the opening trading hours.