SoftBank looking to sell stake in PayTm, Zomato in open market

16 Jun 2023 , 01:07 PM

SoftBank is all set to sell the shares at a profit for the first time since payments major Paytm’s parent company One97 Communications and food aggregator Zomato got listed in 2021 through open market transaction rather than block deals, as per the reports of Moneycontrol. 

The investment bank purchased Zomato shares at an average price of Rs 65-70 per share and Paytm shares at an average price of Rs 830-840 per share. As of June 15, Paytm’s closing price was Rs 900 and Zomato’s closing price was Rs 74.95. Paytm has experienced a substantial 70% increase in value this year, while Zomato has gained 24%, primarily driven by notable improvements in their financial performance.

SoftBank, a prominent investor in Indian startups, known for supporting over 20 unicorns, has adopted a cautious and selective approach in 2023, refraining from participating in any funding rounds. However, the company is actively seeking partial exits from its high-performing portfolio companies. 

In recent transactions, SoftBank sold approximately 2% of its stake in Paytm for $120 million and divested a portion of its holding in Lenskart to private equity firm ChrysCapital.