SoftBank has sold 2.07% stake in Paytm’s parent entity One97 Communications Ltd in order to comply with the SEBI takeover regulations. SVF India Holdings (Cayman) Ltd, a SoftBank arm, has sold 13,103,148 shares between February 10, 2023, and May 8, 2023, which represents approximately 2.07% of the total shareholding. According to reports, the deal is estimated to be worth nearly $120 million. After the sale, SoftBank will still be left with 11.17% stake in Paytm which is around 70,809,082 shares.
“SVF India Holdings (Cayman) Limited has disposed of an aggregate of 13,103,148 equity shares of One 97 Communications Limited in a series of disposals undertaken between February 10, 2023 to May 8, 2023, with the disposal on May 8, 2023 breaching the 2% threshold specified in Regulation 29(2) of the SEBI Takeover Regulations,” SoftBank said in a stock exchange filing. SoftBank offloaded 4.5% stake in Paytm in November 2022 for Rs 1,631 crore through an open market transaction. SoftBank had invested $1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth $220 million at the time of its IPO.
Earlier this month, Paytm reported narrowing of its consolidated loss to Rs 167.5 crore in the fourth quarter ended March, compared to a loss of Rs 762.5 crore in the year-ago period. The consolidated revenue from operations jumped 51.5% to Rs 2,334.5 crore in Q4FY23 from Rs 1,540.9 crore in Q4FY22. In the past one month, Paytm shares have jumped 11.5% and 27% in the last one year.
Today Paytm shares closed 4% down at Rs 698.4. Earlier this month, Goldman Sachs reiterate Buy ration on Paytm stock. “Our 12-month DCF/SOTP-based target price is unchanged at Rs 1,150 (unchanged WACC and terminal growth assumptions of 14% and 5%). We reiterate our Buy rating (on Conviction List) and believe Paytm’s current share price continues to offer a compelling entry point into India’s largest and one of the most profitable fintech platforms,” said analysts at Goldman Sachs.
