SoftBank trims Paytm stake by 2% in open market transactions

29 Feb 2024 , 03:11 PM

Over the course of the last month, SoftBank sold more than 13.7 million shares, or roughly 2.17%, of Paytm on the open market, despite the fact that the fintech giant’s stock price was negatively impacted by a regulatory issue.

The Japanese investor’s ownership in One97 Communications, the company that owns Paytm, has decreased to 2.83% following this most recent sale.

‘The company released a statement stating that, between January 23, 2024 and February 26, 2024, SVF India Holdings (Cayman) Limited sold 13,784,787 equity shares of One97 Communication Limited in total. On February 26, 2024, one of the sales exceeded the 2% threshold outlined in SEBI Takeover Regulation 29 (2).

SoftBank was reportedly hoping to turn a little profit on its Paytm investment, but the RBI’s decision caused the stock to plummet, leaving the Japanese investor facing a loss of $100–150 Million on one of its largest bets in India.

Between December 19, 2023 and January 20, 2024, SoftBank sold 12,706,807 equity shares for approximately ₹950 Crores, reducing its interest from 7% to roughly 5.01%.

Following the RBI’s crackdown on Payment Payments Bank on January 31, the Paytm shares suffered greatly. It crashed at about 60%, then bounced back a little by touching the five% upper circuit in back-to-back sessions.

Paytm’s stock remained down for the third straight trading day on Thursday.  The fintech stock was trading at ₹401.90 on the National Stock Exchange (NSE) at 15:15 pm, a 1% downward move.

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