Paytm shares have been in focus on the commencement of its ₹850 crore buyback plan to drive long-term value creation.
On BSE, Paytm shares closed at ₹542.25 apiece down by ₹37.25 or 6.43%. The stock has plummeted by over 8.8% on Dalal Street with an intraday low of ₹528.35 apiece.
Sources close to the development told Mint that “there was a big movement in Paytm’s stock today as a block deal took place where 2,59,930 shares were sold at ₹535.90 worth 13.93 crore rupees.” These sources confirmed that Chinese group Alibaba is behind the deal, selling up to 3.1% of its total equity of about 6%.
However, the sources also said that Alibaba’s affiliate company, Ant Financial is not going to sell anytime soon in Paytm.
They further added, “this could come as a good news for investors, with Chinese shareholding reducing their stake it will benefit the company in their FDI aspect. In fact, immediately after the block deal (where the share price fell to ₹534), it soon recovered to ₹548.”
In the past few days, Paytm shares have made a significant upside after there were several good news floating about the company. Before the block deal, between January 1-11, the company’s stock gained by nearly 9% on Dalal Street.
Recently, the company’s associate Paytm Payments Bank received RBI approval to appoint Surinder Chawla as its Managing Director and CEO.
