China's Alibaba Group has reportedly sold its entire stake in One97 Communications, the parent company of Paytm, through a block deal that took place on Friday.
According to news agency ANI, a total of 3.4% of equity, or 2.1 crore shares, changed hands in the block deal. This means that Alibaba is no longer a stakeholder in Paytm. The company had previously sold 3.1% of its 6.26% equity in Paytm in January. The bulk and deal data for the day will be released after market hours.
Data showed that a total of 4.73 crore shares were traded on the Paytm counter on NSE, with a total turnover of Rs 3,097 crore, according to media reports. On BSE, 19.61 lakh Paytm shares were traded, compared to an average of 8 lakh shares over the past two weeks. The stock closed the day at Rs 650.75, down 7.82%, but is up 22% so far in 2023.
Paytm has been making significant progress in its financial performance, as it narrowed its losses to Rs 392 crore in the December quarter, down 50% from the same quarter last year. The company's revenue jumped 42% to Rs 2,062 crore, up from Rs 1,456 crore in the previous year. The company, led by Vijay Shekhar Sharma, achieved Ebitda profitability before ESOP costs three quarters ahead of its guidance, reporting Ebitda before ESOP of Rs 31 crore in Q3FY23.
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"I wrote to you on April 6, 2022, and set a target for EBITDA before ESOP cost breakeven by the September 2023 quarter," Vijay Shekhar Sharma said after achieving Ebitda profitability.
"I am very happy to share that our company has achieved this milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself. This is three quarters ahead of our guidance," he added.
Alibaba's exit from Paytm marks a significant change for the company, but it remains to be seen how it will impact the company's future performance. Despite the recent decline in stock price, Paytm has shown positive growth in revenue and profitability, which bodes well for its future prospects.
