MUMBAI: China's Alibaba Group is all set to reduce its shareholding in Paytm parent company - One 97 Communications - on Tuesday. As per sources, Alibaba affiliate Ant Group-backed Antfin Netherlands Holding BV will float 2.6 crore shares, which represent around 4% equity, in the open market.
The floor price for each share is kept at Rs 809.75, a 6.5% discount to Monday's closing prices. Based on this price, the stake sale may fetch the Chinese company about Rs 2,065 crore, based on the minimum price.
Shares of Paytm closed 4% higher at Rs 866.35 on the BSE amid a strong of buying interest seen in the Indian equity market.
Antfin has been reducing its stake in Paytm over the years. According to the shareholding pattern data of the company, it owned 9.85% equity in the Indian fintech company as of March 2025. In August 2023, Antfin divested a nearly 3.6% stake for Rs 2,037 crore.
Investment banking firms - Citigroup and Goldman Sachs - are the merchants for the fresh stake sale.
Last week Paytm reported a loss of Rs 540 crore for the quarter ending March 2025, impacted by a charge from employee stock options. Founder and CEO Vijay Shekhar Sharma gave up ESOPs in the reported quarter, triggering a one-time charge of Rs 492 crore.
The company expects to become profitable from the first quarter of the current fiscal year. "We are at the verge of PAT (profit after tax) profitability. I'm very sure that in the next quarter onwards, if everything goes as we are seeing, it could very well be a profitable quarter," Sharma said in a post-earnings call.