People familiar with the situation claim that a unit of Alibaba Group Holding Ltd. sold a 3 percent stake in Paytm, India's leading digital payments brand, in a partial exit.
Paytm's operator, One 97 Communications Ltd., closed at 6. 2% less after the 19th in Mumbai. Bloomberg's data show that a block trade early on Thursday resulted in the sale of 2 million shares. People claimed, requesting anonymity because the seller's identity has not been made public yet, that the sale was made by an Alibaba unit. Since its much-anticipated trading debut in November 2021, when it raised $2 in what was then India's largest initial public offering, the stock has struggled. five billion After the lockup on the company's shares ended in November, another early investor, SoftBank Group Corp., had reduced its stake in the business.
In an effort to support its struggling stock price, the company has announced an ambitious path to break-even on an adjusted ebitda basis by September of this year and will spend $103 million to buy back some of its shares. Prior to Thursday's selloff, Paytm shares gained for a record nine consecutive sessions. Alibaba did not immediately respond to an email seeking comment, and a representative from Paytm declined to comment. Alibaba. Hong Kong possessed a 6. as of September 30, SoftBank and Antfin Singapore Holding Pte Ltd held approximately 17% and 25%, respectively, of the company.
According to Avinash Gorakshakar, head of research at the local brokerage Profitmart Securities Pvt, "Alibaba seems to be in the exit mode from India as it has sold shares in its major investments, including Zomato." Paytm has been providing positive business updates and is on the fast track to profitability.