The RELIANCE CAPITAL pockets a 2650% return from Paytm investment.


The deal gives a valuation of over $5 billion to Paytm, which is already backed by Alibaba group as a strategic investor.

 RELIANCE CAPITAL has sold its nearly 1 percent stake in One97 Communications the parent company of 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 the RELIANCE group had invested Rs 10 crore in 2010 for a 1.5% for this stake in Paytm. At that time the share of One97 was valued between Rs 250 to Rs 200. In the current sale, shares of Paytm have traded at over Rs 7000 per unit.




The deal gives a valuation of over $5 billion to Paytm, which is backed by Alibaba group as a strategic investor. The source 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 fundraising round, Paytm e-commerce was valued at $1 billion.      
   
Paytm founder Vijay Shekhar Sharma sold 1% of his shareholding in the parent company One97 Communications in December 2016 for Rs 325 crore to raise money for Paytm's payment bank.