Alibaba exiting India? Paytm among other Alibaba-owned stocks seeing selloff
- Paytm's stocks saw a sharp downside movement after a block deal that took place where 259,930 shares were sold.
- Sources have confirmed that Chinese group Alibaba is behind the block deal.
- According to sources, Alibaba seems to be making an exit from India as it had sold shares in other investments as well
Paytm's stocks on Thursday saw a sharp downside movement after a block deal that took place where 259,930 shares were sold.
The shares were sold at Rs 535.90 worth Rs 13.93 crore.
Sources have confirmed that Chinese group Alibaba is behind the block deal, thereby selling about 3.1 per cent of its total
equity of about 6 per cent. With this block deal, Alibaba, the sources said, seems to be making an exit from India as it had sold shares in other investments such as BigBasket and Zomato.
This is expected to bring cheers among investors. With Chinese shareholding reducing their stake, it will benefit the company in their Foreign Direct Investment (FDI) aspect.
Paytm shares' intraday low was Rs 528.10. In fact, immediately after the block deal it soon recovered some part of the losses.
Paytm's shares had been steadily rising for the past few days after there were several good news floating about the company. Its associate
The company had posted a strong operating performance update for the October-December quarter.
The Paytm Super App continued to see growing consumer engagement with the average Monthly Transacting User for the quarter that ended December 2022 at 85 million, registering a growth of 32 per cent on a yearly basis.
The total merchant
AdvertisementThe number of loans grew 117 per cent yearly to 3.7 million for the month of December, and 137 per cent to 10.5 million cumulative loans for the three months ended December 2022.
As a result, total disbursements for the three months ended December 2022 was Rs 9,958 crore, a growth of 357 per cent on year.
Paytm believes it continues to be on track for its profitability plans, with robust revenue growth driven by its strong business model.
Meanwhile, brokerage and global investment firm
Paytm will be key beneficiary of India's UPI incentive scheme: Morgan Stanley
TCS revenue growth to slowdown in FY24: Fitch Ratings
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