Ant Group to Sell 4% Stake in Paytm Worth ₹2,066 Crore via Bulk Deal

Chinese financial services major Ant Group, through its affiliate Antfin (Netherlands) Holding BV, has announced plans to sell a 4% stake in fintech company One97 Communications Ltd—the parent firm of Paytm—for approximately ₹2,066 crore via bulk deals on Indian stock exchanges. The sale will be executed at a floor price of ₹809.75 per share, representing a 6.5% discount to Paytm’s last closing price on the National Stock Exchange (NSE).

Why in News?

This move is significant as it signals Ant Group’s gradual withdrawal from Indian fintech giant Paytm, amid evolving geopolitical dynamics and portfolio rebalancing by global investors. It also marks one of the largest secondary market deals in recent times and reflects foreign investors’ shifting strategy in Indian tech unicorns.

Key Highlights of the Deal

• Seller: Ant Group (via Antfin Netherlands Holding BV)
• Target Company: One97 Communications Ltd (Paytm)
• Sale Type: Bulk deal on BSE and NSE
• Stake Offloaded: Up to 4% (~25.5 million shares)
• Estimated Deal Value: ₹2,066 crore
• Floor Price per Share: ₹809.75
• Paytm’s Previous Close (NSE): ₹866.05
• Discount Offered: ~6.5%

Investment Bankers for the Deal

• Goldman Sachs (India) Securities Pvt Ltd
• Citigroup Global Markets India Pvt Ltd

Background & Context

• Ant Group is an affiliate of Alibaba Group, previously known as Ant Financial.
• Ant and Alibaba together have invested approximately USD 851 million in Paytm since 2015.
• Paytm, headquartered in Noida, is a leading Indian fintech firm offering mobile payments, digital wallets, UPI, and financial services.

Objectives Behind the Stake Sale

• Portfolio rebalancing by Ant Group.
• Monetization of long-term investments in Indian startups.
• Possibly part of broader efforts to reduce exposure to overseas ventures amid tighter Chinese regulations.
• Allows domestic and institutional investors to participate in India’s high-growth fintech market.

Significance

• Reflects foreign investor exit trends from Indian tech companies.
• Demonstrates the maturity of India’s public market to absorb large secondary transactions.
• May trigger short-term volatility in Paytm stock but also provide liquidity in the market.
• Offers insights into how global investment sentiment is evolving in the Indian digital economy landscape.