Ant Group's Strategic Stake Shift: Impact on Paytm Ownership

Ant Group plans to sell up to 4% of its stake in One97 Communications, the owner of Paytm, through bulk deals on BSE and NSE. The sale involves 25.5 million shares and aims to transition Paytm to a predominantly Indian-owned firm, after divesting part of its holdings recently.

Ant Group, the financial services affiliate of Alibaba, is set to divest up to 4% of its stake in One97 Communications, waving goodbye to a significant holding in the company known for its Paytm brand. This move involves the sale of approximately Rs 2,066 crore through bulk transactions on BSE and NSE.

In a strategic shift, 25.5 million shares of the Noida-based fintech firm are being offered for sale at a floor price of Rs 809.75 each, reflecting a 6.50% discount from the latest NSE closing price. Investment banking entities Goldman Sachs and Citigroup are facilitating this sizeable transaction.

Previously in August, Ant Group transferred a substantial portion of its stake to Paytm's founder Vijay Shekhar Sharma, signaling a shift towards Indian ownership. The overall investment by Alibaba and Ant Financial in Paytm has reached USD 851 million since 2015. Post the stake sale, the landscape of Paytm's ownership hovers closer to home, marking a new chapter in its corporate saga.

(With inputs from agencies.)