SoftBank sells 2% stake in Paytm; here’s how much it is left with now

SoftBank arm, SVF India Holdings (Cayman) Ltd has offloaded 13,103,148 shares on Paytm between February 10, 2023, and May 8, 2023.

SoftBank Paytm stake sale
SoftBank will still be left with 11.17% stake in Paytm which is around 70,809,082 shares, after the sale.

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.

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First published on: 11-05-2023 at 17:36 IST