Paytm shares nosedive 6% on Alibaba block deal report
Indian digital payments and financial services company, Paytm shares nosedived by nearly 9% on Thursday after a block deal on stock exchanges. The large deal took place during the second half of the day. Paytm has been in focus on the commencement of its ₹850 crore buyback plan to drive long-term value creation. However, currently, Paytm shares are near the day’s low.
At the time of writing, Paytm shares slipped by ₹35.85 or 6.19% to trade at ₹543.65 apiece on BSE. The stock has plummeted by over 8.8% on Dalal Street with an intraday low of ₹528.35 apiece.
China-backed Alibaba sold a 3.1% stake in Indian digital payments firm Paytm worth $125 million through a block deal on Thursday, a source with direct knowledge of the matter told Reuters. The report added that Alibaba, which held a 6.26% stake in Paytm as of end-September, sold the stake at 536.95 rupees apiece, the source said.
Alibaba and Morgan Stanley did not immediately respond to Reuters’ requests for comment.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.