Bought for Rs 10 crore, Reliance Capital sells Paytm stake to Alibaba for Rs 275 crore
Reliance Capital has sold its nearly 1 % stake in popular digital payments firm Paytm for Rs 275 crore to China's Alibaba Group in a deal reaping huge gains for the Anil Ambani-led group firm.
The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm.
The deal gives a valuation of over $ 4 billion to Paytm, which is already backed by Alibaba group as a strategic investor.
Sources said that Reliance Capital has retained a stake in Paytm e-Commerce, which it had got free of cost by virtue of the investment in the parent firm. In the latest fund-raising round, Paytm e-Commerce was valued at $ 1 billion.
A Reliance Capital spokesperson declined to comment on the deal while Paytm spokesperson also did not comment.
Earlier, Reliance Capital had said it would trim its proprietary investment portfolio as part of its plans to monetise non-core assets.
In December last year, Paytm founder and CEO Vijay Shekhar Sharma had sold 1 % of his holding in One97 Communications, the parent firm of the digital payments firm, to raise about Rs 325 crore.
This money was to be pumped into the group's payments bank operations, which are slated to commence soon.
Alibaba Singapore E-commerce, along with investment firm SAIF Partners, is also slated to invest $ 200 million in Paytm's online marketplace unit.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
12:21 PM IST