Alibaba-Backed Chinese Firm Sells Paytm Stake; Stock Hits 52-Week High, Missing Out on Rs 1368,46,47,019 Gain

On Wednesday, Indian indices on Dalal Street were trading positively, with the Sensex up 0.40 per cent and the Nifty-50 indices gaining over 0.5 per cent. Amidst this market uplift, shares of One 97 Communications Ltd (Paytm) surged by 5.98 per cent, reaching a new 52-week high of Rs 1,187 per share, up from its previous close of Rs 1,120 per share.

Meanwhile, a notable development involved an Alibaba-backed Chinese firm, which had previously divested its stake in Paytm. This firm missed out on significant potential gains by selling shares before the recent surge. Specifically, on May 14, 2025, they sold 1,27,55,045 shares at Rs 823 per share and another 1,27,55,045 shares at Rs 826 per share. Subsequently, on August 6, they sold an additional 3,72,87,726 shares at Rs 1,068 per share. With the current share price at Rs 1,187 per share, the missed gain is calculated as follows:

1. For the first tranche of 1,27,55,045 shares: 1,27,55,045 x (Rs 1,187−Rs 823) = Rs 4,64,28,36,380
2. For the second tranche of 1,27,55,045 shares: 1,27,55,045 x (Rs 1,187−Rs 826) = Rs 4,60,45,71,245
3. For the third tranche of 3,72,87,726 shares: 3,72,87,726 x (Rs 1,187−Rs 1,068) = Rs 4,43,72,39,394

The cumulative sum of these calculations amounts to a missed gain of Rs 1368,46,47,019.

Alibaba-backed Chinese Firm that sold shares of One 97 Communications Ltd (Paytm) is Antfin (Netherlands) Holding B.V.

Antfin (Netherlands) Holding B.V. is a Dutch-registered financial services entity that is an affiliate of Ant Group. Ant Group, in turn, is a major Chinese fintech company closely associated with Alibaba Group. Antfin has been a significant investor in various companies, particularly in the Indian startup ecosystem, with its investment in Paytm being a prominent example. While Antfin has recently completed its exit from Paytm, this move reflects strategic shifts and evolving regulatory environments rather than direct ownership by Alibaba.

Alibaba Group, co-founded by Jack Ma in 1999, is a multinational technology conglomerate headquartered in Hangzhou, China. It operates across various sectors, including e-commerce (like Taobao and Tmall), cloud computing (Alibaba Cloud), digital media and entertainment, and logistics. Although Alibaba holds a substantial stake in Ant Group (around 33 per cent), they function as separate corporate entities. Key shareholders of Alibaba Group include institutional investors like SoftBank Group, along with co-founders Jack Ma and Joseph Tsai. Alibaba's diversified ownership structure and extensive business operations make it one of the world's largest and most influential technology companies.

About One 97 Communications Ltd (Paytm)

One 97 Communications Ltd (Paytm) is a major Indian technology company, best known for its Paytm digital payments and financial services platform. Founded in 2000 by Vijay Shekhar Sharma, it offers a wide range of services including mobile payments, bill payments, money transfers, and financial products like loans and insurance. Paytm has played a significant role in India's digital payments revolution, serving millions of consumers and merchants. Its subsidiary, Paytm Payments Services, recently received "in-principle" authorization from the RBI to operate as an online payment aggregator, which is a key step in its continued growth.

In Q1FY26 results, the company reported revenue of Rs 1,918 crore and net profit of Rs 122 crore while in FY25 results, the company reported revenue of Rs 6,900 crore and net loss of Rs 663 crore. The company has a market cap of over Rs 75,000 crore and the stock gave multibagger returns of 137.7 per cent from its 52-week low of Rs 499.45 per share.

Disclaimer: The article is for informational purposes only and not investment advice.