Chinese conglomerate Alibaba is learnt to have sold a 3.1% stake - almost half of its direct shareholding - in digital financial services firm One97 Communications in an indication of exiting the Indian market, sources said on Wednesday.
However, Alibaba group firm Ant Financial has not diluted its stake in Paytm and continues to hold 25% of the company.
"There was a big movement in Paytm's stock today as a block deal took place where 2,59,930 shares were sold at ₹535.90 worth ₹13.93 crore. Chinese group Alibaba is behind the deal, selling up to 3.1% of its total equity of about 6%," a source closely watching the development at Paytm told PTI.
The development follows Alibaba's stake sales in BigBasket and Zomato. "Alibaba seems to be making an exit from India as it has sold shares in other investments," the source said.
The company's shares closed at ₹542.25 apiece, losing 6.43%, on the BSE.
Paytm's shares have been gaining after its associate Paytm Payments Bank received the RBI approval to appoint Surinder Chawla as its Managing Director and CEO.
Email queries sent to Alibaba and One97 Communications did not elicit any immediate reply.