Paytm Shares Plummet 8.8% After $125 Million Share Sale By Ant Financial

• Paytm shares declined 8.8% on Thursday after a shareholder offloaded 19.20 million shares.
• Reports suggest that the likely seller in the Paytm block deal is Alibaba Group affiliate Ant Financial.
• The monetary value of the recent sale is estimated to be around $125 million.

Paytm, the Indian digital payments and financial services platform, saw its shares drop sharply on Thursday following a series of block deals recorded by parent One97 Communications Ltd. According to reports, roughly 19.20 million shares or a 3% stake in the platform changed hands, with the monetary value of the recent sale estimated to be around $125 million. The likely seller in the Paytm block deal is said to be Alibaba Group affiliate Ant Financial, who held 164.42 million shares, or a 24.88% stake, in Paytm as of September last year. Morgan Stanley reportedly advised Alibaba on the deal.

The recent decline in Paytm shares marks the steepest plunge since November 22nd, with the company’s stock trading at Rs 528 a share as of press time and down 5% from its previous close on the Bombay Stock Exchange (BSE). Before this development, the company’s stock had accrued 15% since December 26th. It traded up 8.7% in the first week of 2021 and had gained around 40% in 2020.

Paytm has been continuously expanding its services and offerings, with recent launches including Paytm Bank, Paytm Money and Paytm Payments Bank. Additionally, the platform is said to be in the process of raising $2 billion to fund its growth plans. Despite the recent downturn in its stock price, Paytm’s market capitalization still stands at over $15 billion.