Paytm’s stock dropped sharply on Thursday following a block sale in which 259,930 shares were sold.
The shares were sold for Rs 535.90, amounting to Rs 13.93 crore. According to sources, Chinese conglomerate Alibaba is behind the block offer, selling around 3.1% of its overall stock of approximately 6%.
According to the sources, Alibaba appears to be exiting India with this block purchase, since it has sold stakes in previous companies such as BigBasket and Zomato.
This is likely to make investors happy. With Chinese equity decreasing, the firm will gain from Foreign Direct Investment (FDI).
The intraday low for Paytm shares was Rs 528.10. In fact, it quickly regained some of its losses following the block transaction.
Paytm’s stock has been gradually climbing in recent days as a result of various positive stories about the firm. Surinder Chawla, the Managing Director and CEO of its partner Paytm Payments Bank, has been appointed by the RBI as its Managing Director and CEO.
The firm provided a positive report on its operating performance for the October-December quarter.
