Alibaba Group, a Chinese company, sold a 3.1% stake in Indian digital payments company Paytm for $125 million through a block deal on Thursday. Prior to the sale, Alibaba held a 6.26% stake in Paytm, as of the end of September. The stake was sold at a price of 536.95 rupees per share, according to a source with knowledge of the matter.
As a result of the sale, Paytm’s stock dropped by as much as 8.8% to 528 rupees during afternoon trading and was last seen trading down 5.8% as of 2:37 p.m. IST. The sale was advised by Morgan Stanley, as per the source. However, neither Alibaba nor Morgan Stanley has immediately commented on the matter when reached out by Reuters.