One97 Communications, a provider of digital financial services operating under Paytm, announced that it has completed the buyback of shares worth Rs 849.83 crore at an average price of Rs 545.93 per share.

Shares were repurchased by the firm for between Rs. 702.65 and Rs. 480.25 per share.

On December 13, the Paytm board approved the buyback of shares worth Rs 850 crore, or 6.67 percent of the company's fully paid-up share capital, between December 21, 2022 and February 13.

Chinese e-commerce giant Alibaba sold its whole direct ownership in the company in two installments during the repurchase period.

The company's parent company, Ant Financial, is still the largest shareholder in Paytm and continues to own a 25 percent stake in the online financial services provider.

"The company bought back an aggregate of 1,55,66,746 equity shares utilizing a total amount of Rs 849.83 crore which represents 99.98 percent of the maximum buy-back size. The price at which equity shares were bought back was dependent on the price quoted on the stock exchanges," says the company.

Last week, China's Alibaba Group raised Rs 1,378 crore by selling a 3.3 percent interest in One97 Communications, the parent company of Paytm, on the open market.

Alibaba.com 2,14,31,822 shares were sold by Singapore E-Commerce Pvt Ltd at a price of Rs 642.74. This was at a sharp nine percent discount to the stock's closing price on Thursday.

Alibaba.com In January, Singapore E-Commerce Pvt Ltd also sold a three perceent interest for Rs 1,031 crore.

Alibaba owned 6.3 percent of the company through this affiliate as of December. Through another subsidiary, Antfin (Netherlands) Holding B.V., the Chinese retailer has a stake of about 25 percent in the parent company of Paytm.

Alibaba has been selling shares in publicly traded new-age technology companies in India as the value of its investments has been rapidly declining. Earlier in November, the Chinese multinational sold a three percent share in online meal delivery aggregator Zomato.

Paytm’s Q3 net loss had narrowed to Rs 392 crore from Rs 779 crore a year ago.

In the words of Paytm CEO Vijay Shekhar Sharma, "With our focus on growth and keeping a tight vigil on operational risk and compliances, I am very confident that we will soon achieve our next milestone of becoming a free cash flow generating company”.