BABA: Alibaba To Exit India’s Eternal Stake — But $433M Ant IPO Fallout Still Hangs Overhead

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA is reportedly preparing to exit its stake in India’s Eternal via a block deal worth ₹53.75 billion ($613 million), according to CNBC-Awaaz. The transaction, through its Antfin Singapore unit, involves selling its full 2.08% stake at ₹285 per share—a 4.6% discount to market price.

Key Deal Details

• Antfin Singapore to offload 2.08% Eternal stake via block deal
• Deal value: ₹53.75 billion (~$613 million)
• Floor price: ₹285/share — a 4.6% discount to Eternal’s market close
• Eternal owns food delivery major Zomato and quick commerce player Blinkit
• Comes amid Alibaba’s broader portfolio restructuring and retreat from India

This move is part of Alibaba's continued retrenchment from overseas minority stakes amid profitability pressures, increased geopolitical scrutiny, and growing focus on domestic AI and cloud initiatives.

Timeline Overview

• November 5, 2019: Regulators warned Alibaba and others on antitrust risks
• November 3, 2020: Ant’s IPO suspended; BABA fell 8%
• December 24, 2020: BABA plunged 13% after new antitrust probe
• April 22, 2022: Shareholders sued Alibaba over omissions

Allegations Include

• Misleading investors about regulatory risks surrounding Ant Group
• Withholding material info about new lending restrictions and compliance issues
• Causing stock losses through lack of transparency on IPO suspension

Investor Update

Alibaba agreed to pay $433.5 million to settle claims it misled investors about Ant Group’s failed IPO and related regulatory pressure. The lawsuit centered on the sudden halt of a $30B listing and ensuing stock losses.

You can check more information about it and file for a payout HERE.