SoftBank Trims Paytm Stake to 5.06% with 2% Sell-off, Nets Nearly Rs 950 Crore

24 Jan 2024 , 03:25 PM

SoftBank has sold an additional 2 % stake in Paytm’s parent company, One97 Communications, through open market operations. The recent sale brings SoftBank’s stake down to approximately 5.06 %.

SVF India Holdings (Cayman) Limited, a SoftBank entity, disposed of 12,706,807 equity shares of One97 Communications between December 19, 2023, and January 20, 2024.

The stake sale breached the 2 % threshold specified in Sebi Takeover regulations. Last year, SoftBank, which previously held close to 7 % in Paytm, sold 0.55 % in December and 1.4 % in January.

The 2 % stake sale in January resulted in close to Rs 950 crore. Domestic retail investors increased their stake in Paytm to 12.85 % sequentially in Q3FY24, up from 8.28 % in the previous quarter.

Domestic institutions, likely acquiring SoftBank’s stake, increased their portion to 6.06 % from 4.06 %. Paytm’s improving operating performance in Q3FY24, with a 38 % jump in consolidated revenue at Rs 2,850 crore and reduced losses to Rs 222 crore, contributed to the bullish sentiment.

SoftBank has been steadily reducing its holdings in listed Indian startups, including Zomato and PB Fintech.

SoftBank is gearing up to reinvest in Indian startups and preparing for the potential listing of companies in its portfolio, including Swiggy, Firstcry, and Ola Electric, according to Sumer Juneja, head of India and EMEA at SoftBank Investment Advisers.

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