Why Ant Financial is reducing its Paytm stake amid rising geopolitical tensions

Alibaba’s fintech arm, Ant Financial, has likely sold a 4.1% stake in Paytm’s parent company, One97 Communications, through a block deal, according to market sources. This move aligns with Chinese companies’ ongoing efforts to reduce their exposure to Indian investments amid geopolitical tensions.

The news triggered a significant drop in Paytm’s stock, which plummeted 5% to hit a day’s low of Rs 823.10 on the BSE during early Tuesday trade.

Deal details

• Stake sold: 1.7 crore shares
• Value: Rs 2,200 crore
• Remaining stake: Below 5% (down from…