Soon After Alibaba’s Disinvestment, Morgan Stanley Buys Over 50 Lakh Shares Of Paytm

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Following the sale of a stake in One 97 Communications aka Paytm by Alibaba Singapore, Morgan Stanley Asia (Singapore) has purchased a new stake in the bear-hit fintech stock. According to the NSE website, Morgan Stanley Asia (Singapore) purchased 54,95,000 Paytm shares for $534.80 per share. Morgan Stanley has invested approximately Rs 294 crore in Paytm shares, which have fallen by more than 45 per cent in the last year.

According to the NSE bulk deals, Morgan Stanley completed this transaction on January 12, 2023. Morgan Stanley paid Rs 294 crore for Paytm shares. On the same day, one of the digital payments firm’s early backers, a unit of Alibaba Group Holding, made a partial exit.

On the same day, Alibaba.com sold 1.92 crore Paytm shares. These Paytm shares were sold by Alibaba for Rs 536.95 per share. Alibaba offloaded Paytm stocks worth over Rs 1,031 crore in a bulk transaction on Thursday, January 12, 2023.

On the same day, a US-based hedge fund, Ghisallo Master Fund, purchased a stake in Paytm through an open market transaction. The Asset Management Company (AMC) purchased 49.80 lakh Paytm shares for Rs 534.80 per share. This means that the US-based FII has invested nearly Rs 266 crore in the fintech company.

So, despite the sale of Alibaba.com, Paytm was able to secure a 560 crore FII investment from these two FIIs (Morgan Stanley and Ghisallo Master Fund) in an open market bulk deal on January 12, 2023.

One 97 Communications or Paytm launched its initial public offering (IPO) in November 2021 with a price range of Rs 2,080 to Rs 2,150. The public offering received a lukewarm response from investors, with Paytm shares trading at a 9% discount to its upper price band of Rs 2,150 per equity share. However, the apathy of allottees didn’t end here as the stock continue to remain under sell off heat since its listing on BSE and NSE. Paytm share price today is around Rs 550 apiece, near 75 per cent lower from its upper price band of Rs 2,150 per share.



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