• Paytm shares declined 8.8% on Thursday following a series of block deals recorded by parent One97 Communications Ltd.
• Around 19.20 million shares or a 3% stake in the digital payments and financial services platform changed hands, with a monetary value of roughly $125 million.
• Reports state that the likely seller in the Paytm block deal is Alibaba Group affiliate Ant Financial.
Paytm, a digital payments and financial services platform, recently saw its stock decline markedly after a shareholder offloaded 19.20 million shares. On Thursday, shares of the company suffered an 8.8% decline following a series of block deals recorded by parent One97 Communications Ltd. The monetary value of the recent sale is around $125 million.
Reports indicate that the likely seller in the Paytm block deal is Alibaba Group affiliate Ant Financial. As of September last year, Ant Financial held 164.42 million shares, or a 24.88% stake, in Paytm. Morgan Stanley reportedly advised Alibaba on the deal. This marks the steepest plunge in Paytm shares since November 22nd.
The recent decline in Paytm shares has been a cause of concern for investors and industry experts alike. While the company’s stock was trading at Rs 528 a share as of press time, it was also trading down 5% from its previous close on the Bombay Stock Exchange (BSE). Before this development, the company’s stock had accrued 15% since December 26th.
Industry experts believe that the recent sale of shares may have been due to the company’s struggles to compete with rivals such as Google Pay, Amazon Pay and PhonePe in the digital payments space. Paytm has also been facing issues with the Reserve Bank of India (RBI) over the company’s KYC procedures, which may have further contributed to the decline in its share price.
Paytm is now facing an uphill task in regaining investor confidence and restoring its stock price. Whether the company will be able to overcome the challenges it is currently facing remains to be seen.
Neueste Kommentare