Ant Group, an affiliate of China’s Alibaba Group, is set to divest a 4% stake in Indian fintech firm Paytm, valued at approximately ₹2,200 crore (around $242 million), through a block deal. The shares will be offered at ₹809.75 each, reflecting a 6.5% discount to Paytm’s closing price on May 12, 2025.
📉 Strategic Stake Reduction
This move signifies Ant Group’s continued reduction of its holdings in Paytm. Previously, in August 2023, Ant sold a 10.3% stake to Paytm’s founder and CEO, Vijay Shekhar Sharma. mint
The current sale is being managed by Goldman Sachs India Securities and Citigroup Global Markets India. Details regarding the buyers have not been disclosed.
🏦 Background: Ant Group and Paytm
Ant Group, known for its digital payment platform Alipay, has been a significant investor in Paytm, India’s leading digital payments company. Paytm, operated by One97 Communications, has been at the forefront of India’s digital payment revolution, offering services ranging from mobile recharges to financial services.
Over the years, Ant Group’s stake in Paytm has been a subject of scrutiny, especially amid geopolitical tensions and regulatory challenges. The gradual reduction of its stake aligns with Ant Group’s strategy to streamline its international investments.
📊 Market Implications
The sale could impact Paytm’s stock in the short term due to the discounted price of the block deal. However, it also opens opportunities for new investors to acquire a stake in the company. Analysts will be watching closely to see how this development affects Paytm’s market performance and investor sentiment.
