New Delhi: At a time when the standoff at Eastern Ladakh still continues, it was reported on Wednesday that Chinese fintech firm Ant Group is planning to sell 30 per cent stake in Indian digital payment firm Paytm. However, Ant Group has not yet launched the formal sale process as yet.Also Read - Expert Panel Map China's Footprints in India, Hidden Agenda to Increase Chinese Influence
The news was reported at a time when India has been in a bitter standoff with China in Eastern Ladakh for more than 4 months now. In a latest development, India has also banned a number of Chinese applications including Tencent, Alibaba and ByteDance. The Central government last month has banned 43 more applications. Also Read - Raksha Bandhan Offer: Buy Gift Cards From Paytm, Amazon And Get Attractive Cashback | Details Here
As per reports, if Ant Group plans to go ahead with the stake sell in Paytm, it would mark another reversal for the Chinese company that has been recently hit by a dramatic suspension of its massive IPO, pegged at $37 billion. Also Read - Ladakh Standoff: India, China Pull Out Troops From Gogra Point Nearly After 15 Months
However, the report has been denied by both Paytm and Ant Group with a Paytm spokesperson saying to a news agency that there has been no discussion with any of their major shareholders about a stake sale.
On the other hand, India has also tightened its FDI rules to prevent “opportunistic takeovers”. Issuing a statement, China had earlier said that India’s revised FDI norms violate WTO’s “principle of non-discrimination”.
As per updates, Ant Group had in 2015 first invested in Paytm and owns 30 per cent stake in the firm through its parent company, One97 Communications.