Another 2% of Paytm is sold by SoftBank for $250–300 million

18 Jul 2023 , 12:59 PM

Since Paytm’s share price has remained over Rs 830 during that time, which was the cost price for the Japanese investor, SoftBank has been frequently selling shares over the past month in tiny batches through open market transactions and primarily at a profit.

Through open market operations, SoftBank has recently sold a further 2% stake in One97 Communications Ltd, the parent company of Paytm, which generated about $300 million. This is the Japanese investor’s largest listed investment in India and the third-largest investment destination overall.

News reports stated that SoftBank has been selling shares regularly over the past month in small batches through open market transactions, frequently at a profit as Paytm’s share price has been above Rs 830 during the time, which was the cost price for the Japanese investor.

Since the fintech company went public in November 2021, this is the first time a Japanese investor has been successful in selling Paytm shares at a profit.

Since November, when the one-year lock-in period for the stock expired through either open market operations or block agreements, SoftBank has started reducing its interest in Paytm. The current deal has reduced SoftBank’s ownership of Paytm to 9.15%.

‘SoftBank has been selling Paytm shares since November of last year, and all the share sales between Rs 550 and Rs 840 were at a loss for the company,’ claimed one of the reports quoted above.

‘However, the share sales that had place over the past month were profitable. As a result, Paytm has turned into a breakeven investment for SoftBank,’ the report continued.

Nevertheless, the Japanese investor confirmed in a stock exchange filing later that day that ‘SVF India Holdings (Cayman) Ltd has disposed of an aggregate of 12,771,434 equity shares of One97 Communications Ltd in a series of disposals undertaken between May 9, 2023, and July 13, 2023, with the disposal on July 13, 2023, breaching the 2% threshold specified in Regulation 29 (2) of the SEBI Takeover Regulations.’

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