One97 Communications, the parent company of payments giant Paytm saw its stock plummet on Tuesday after Ant Group and SoftBank failed to convince billionaire Sunil Mittal to a secondary share sale.

What Happened? Paytm investors Ant Group and SoftBank are reportedly looking to sell shares via a secondary share sale in the fintech company. These investors had approached telecom billionaire Sunil Mittal and another Indian conglomerate with an offer to buy their shares, according to an Economic Times report.

However, the conversation fell through, the report said, adding that Paytm's founder and CEO Vijay Shekhar Sharma, alongside other top brass members, were opposed to a strategic investor getting on the company’s board.

The deliberations follow Ant affiliate Alibaba Group Holding Ltd.’s sale of its stake in Paytm, as the e-commerce giant pared back investments in India amid growing geopolitical tensions.

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The development with Ant Group also follows the investment firm's senior vice president Douglas Feagin stepping down from his role on Paytm's board of directors.

The fintech major posted its first-ever quarterly operating profit as a listed firm and the company’s losses also narrowed during the third quarter of the current fiscal (Q3 FY23).

Paytm’s net loss in the quarter through December narrowed to ₹392 crore as compared to ₹779 crore a year earlier whereas its revenue from operations rose 42% to ₹2,062 crore.

The company also completed a buyback of shares worth ₹850 crore at an average price of ₹545.9 per share. The board approved the buyback proposal on Dec. 13, representing 6.67% of the total paid-up share capital between Dec. 21, 2022 to Feb. 13, 2023.

Price Action: Paytm’s share price was down by 7.06% at ₹590.30 on Tuesday afternoon.

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