Shares of Paytm were up over 1% on Friday after it was reported that Ant Financial was likely to sell a stake in the Indian fintech firm.
What Happened: Ant Financial, the Chinese fintech giant, is getting ready to sell a 3.6% stake sale in Paytm, which equates to 2.3 crore Paytm shares, Bloomberg reported.
This sale is set to happen through a block deal with an anticipated floor price of about ₹880.10 per share. Paytm’s closing share price on the Bombay Stock Exchange was ₹904.20, showing a minimal 0.15% decline.
Earlier this month, it was reported that Paytm founder and CEO, Vijay Shekhar Sharma, would acquire a 10.3% stake in Paytm from Antfin. The stake will shift from Antfin to an overseas entity entirely owned by Sharma, called Resilient Asset Management BV.
As a result, Sharma’s share in Paytm will likely increase to 19.42%, while Antfin’s stake will decrease to 13.5%.
Other exits: The Alibaba Group recently concluded a stake sale in Paytm, amounting to about ₹1,378 crore through a block deal. Ant Group, an affiliate of Alibaba Group and owner of Antfin, had previously divested its stakes in Zomato, Bigbasket and Paytm Mall.
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Other Paytm shareholders have also been reducing their positions. SoftBank, for instance, has been consistently selling shares in small increments over the past few months, usually at a profit.
Price Action: Paytm’s share price was up 1.17% at ₹915 around the start of trade on Friday.
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