Chinese e-commerce giant, Alibaba Group, sold a 3.1% stake in the Indian digital payments firm, Paytm, via a block trade on Thursday.
The sale reduces Alibaba’s 6.26% stake (as of September 2022) by almost half, and comes on the back of Paytm’s December decision to approve a $103 million share buyback to soften weak stock performance. Paytm's stock price closed 2022 60% lower than its January stock price.
US investment bank Morgan Stanley acted as sole placement agent for the block trade, with a source telling Reuters that the stake was sold at 536.95 rupees per share, a 7.3% discount to last close.
Paytm raised $2.5 billion when it listed as India's biggest ever IPO in 2021 on the Mumbai stock exchange (BSE), however, on its market debut the company's shares tanked by 27%.