Alibaba sold its stake in India’s Paytm for $167 million | – #Alibaba #sold #stake #Indias #Paytm #million
BENGALURU, 10 February (Reuters) – China’s Alibaba Group ( 9988.HK ) block deal for remaining stake in Indian digital payments firm Paytm ( PAYT.NS ) way with about 13.78 billion to rupees (167.14 million dollars) sold. On Friday.
The exit comes days after Paytm posted its first-quarter operating profit as a listed firm, nine months ahead of its target.
Alibaba.com Singapore E-Commerce Pvt Ltd on Friday sold 21.4 million shares of Paytm at 642.74 rupees each, a 9% discount to Thursday’s close, NSE data showed.
Shares of Paytm closed down around 8% at Rs 650.55 on Friday, but are still up around 23% this year.
According to reports, Morgan Stanley Asia (Singapore) Pte bought 5.42 million shares of Paytm at Rs 640 on Friday.
It was not immediately clear why Alibaba was selling the stake. Paytm and Alibaba did not immediately respond to requests for comment from Reuters.
January Alibaba 125 million per month dollars block transaction worth way sold his 3.1% stake in the company. Earlier, the Chinese firm held a 6.26% stake in Paytm.
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Paytm, which is also backed by China’s Ant Group and Japan’s SoftBank Group Corp ( 9984.T ), is under pressure to become profitable after it listed on a distressed note in November 2021.
The stock has fallen nearly 70% since listing and is down 60% in 2022.
Earlier this week, Macquarie Research doubled down on the stock from “underperform” to “outperform” and raised its price target by nearly 80% to Rs 800.
“Perhaps the last month in the stock on the sell side, we are changing our view and doubling down on PayTM,” Macquarie analyst Suresh Ganapathy said.
“We are seeing a very marked shift in management’s approach to delivering profits, as evidenced by the recently announced core EBIDTA profitability. We previously expected losses to continue, but with the current revenue pace and operating leverage kicking in, we expect to deliver book profits. By FY26.”
($1 = 82.4480 Indian rupees)
Reporting by Dimpal Gulwani and Chris Thomas in Bengaluru; Edited by Devika Syamnath
Our standards: Thomson Reuters Trust Principles.
2023-02-10 21:11:36
Source – reuters
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