Shares of Reliance Capital advances on selling stake in Paytm

Shares of Reliance Capital BSE -1.40 % were trading higher in early trade on Wednesday after reports that Anil Ambani-led group firm sold its stake in One97 Communications -the parent company of digital payments provider Paytm -to China’s Alibaba in a deal estimated at Rs 275 crore.
For the quarter ended December 31, 2016, Reliance Capital reported net profit of Rs 209 crore, down 11.06 per cent, against Rs 235 crore in the corresponding quarter last year. Net sales of the company increased 71.48 per cent year-on-year to Rs 3896 crore for the quarter under review.
The scrip was trading 0.28 per cent up at Rs 544.40 around. Shares of Reliance Capital opened at Rs 544 and touched a high and low of Rs 547.40 and Rs 543.60, respectively, in trade so far. Benchmark BSE Sensex was down 15.41 points, or 0.05 per cent, at 28984.15 around the same time.
Reliance Capital invested Rs 10 crore in 2010 for a 1.5 per cent stake in One97 in anticipation of a public listing of shares by the Paytm owner, a plan which was later dropped. At that time, the shares of One97 were valued between Rs 250 to Rs 200 said the person cited above. After One97 raised additional capital, this stake got diluted to 0.83 per cent.
“In the current sale, shares of Paytm have traded at over Rs 7,000 per unit.”