Paytm shares slip over 6% after Alibaba sells direct stake via block deal

Chinese conglomerate Alibaba is learnt to have sold a 3.1 per cent stake — nearly half of its direct shareholding — in digital financial services firm One97 Communications in an indication of exiting 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 per cent of the company.

“There was a big movement in Paytm's stock today as a block deal took place where 2,59,930 shares were sold at Rs 535.90 worth Rs 13.93 crore. Chinese group Alibaba is behind the deal, selling up to 3.1 per cent of its total equity of about 6 per cent,” a source closely watching the development at Paytm told PTI. The development follows Alibaba’s stake sale in BigBasket and Zomato. “Alibaba seems to be making an exit from India as it has sold shares in other investments,” the source said.

The company’s shares closed at Rs 542.25 apiece on the BSE, down 6 .4 per cent from previous close.

Paytm’s shares have been gaining after its associate Paytm Payments Bank received the Reserve Bank of India’s approval to appoint Surinder Chawla as its managing director and Chief executive officerEmail queries sent to Alibaba and One97 Communications did not elicit any immediate reply.

Nykaa shares end in red

Meanwhile, beauty retailer Nykaa — owned by FSN E-commerce — fell by 3.45 per cent to Rs 149.75 per share on the BSE at the end of Thursday’s trade. On Wednesday, the stock had closed at Rs 155.10.

The intraday stock development followed a reported block deal of 1.4 crore shares to raise $26 million, priced at Rs 148.90 per share, according to Bloomberg. The retailer’s shares have nearly halved in the past one year, falling by 55 per cent.