Paytm's Stock Price Plummets 6% After Alibaba Group Sells 3.1% Stake in Block Deal
By: Global Trends Hub
1. Paytm's parent company, One97 Communications Limited (OCL) saw a 6.43% decrease in stock price on Thursday.
1. Paytm's parent company, One97 Communications Limited (OCL) saw a 6.43% decrease in stock price on Thursday.
2. The drop in stock price was caused by news of China's Alibaba Group selling a 3.1% stake in the company through a block deal.
2. The drop in stock price was caused by news of China's Alibaba Group selling a 3.1% stake in the company through a block deal.
3. The total value of the stake sold was $125 million.
3. The total value of the stake sold was $125 million.
4. As of September, Alibaba held a 6.26% stake in Paytm and sold the stake at Rs 536.95 per share.
4. As of September, Alibaba held a 6.26% stake in Paytm and sold the stake at Rs 536.95 per share.
5. Financial giant Morgan Stanley advised Alibaba on the deal, but no official comments have been made by either party.
5. Financial giant Morgan Stanley advised Alibaba on the deal, but no official comments have been made by either party.
6. This marks the first time in 10 days that Paytm's shares have fallen.
6. This marks the first time in 10 days that Paytm's shares have fallen.
7. Despite a strong business update for Q4 of 2022, the company's shares continue to trade lower than its original listing price and ended the year with a 60% loss.
7. Despite a strong business update for Q4 of 2022, the company's shares continue to trade lower than its original listing price and ended the year with a 60% loss.
8. Investors have raised concerns over the company's monetization and profitability plans since its IPO in 2021, which was India's largest at the time.
8. Investors have raised concerns over the company's monetization and profitability plans since its IPO in 2021, which was India's largest at the time.