Paytm shares fall to lowest since May after Softbank's stake sale
As per sources, Norges Bank, Segantii, Millenium, LMR, Ghisallo have bought majority of SoftBank Vision Funds India Holdings (Cayman) Ltd shares in Paytm. The stock of One97 Communications Ltd was trading 9.2 percent lower at Rs 546.5 on BSE at 9:35 am.
The shares of One97 Communications Ltd fell as much as 10 percent in morning trade on Thursday, the lowest since May after 4.9 percent equity worth Rs 1,789 crore changed hands at an average price of Rs 562 per share on the NSE.
As per sources, Norges Bank, Segantii, Millenium, LMR, Ghisallo have bought majority of SoftBank Vision Funds India Holdings (Cayman) Ltd shares in Paytm. Hedge fund and long only funds account for majority of buyers of Softbank shares in Paytm.
The stock of One97 Communications Ltd was trading 9.2 percent lower at Rs 546.5 on BSE at 9:35 am.
On Wednesday, Bloomberg reported that SoftBank was likely to sell $215 million worth of shares in Paytm's parent company One97 Communications Ltd, via a block deal on November 17. BofA Securities was selected as the broker for the deal.
SoftBank Vision Funds (SVF) India Holdings (Cayman) held a 17.47 percent stake in Paytm.
Alibaba Group Holding Ltd and its fintech affiliate Ant Group Co are the most significant shareholders in One97 Communications. Singapore E-Commerce Private Ltd holds 6.26 percent of One97, while Antfin (Netherlands) Holdings B.V. has another 24.88 percent. Berkshire Hathaway Inc's BH International Holdings owns 2.41 percent.
For the September quarter, the digital financial services firm reported a widening of consolidated loss to Rs 593.9 crore, against a loss of Rs 481 crore in the same period a year ago. Paytm's consolidated revenue from operations increased by about 76 percent to Rs 1,914 crore during the quarter under review.
Moneycontrol earlier reported that SoftBank, whose holdings in Paytm, Policybazaar and Delhivery are currently worth $1.8 billion, will pare its stakes gradually over the next two years to not trigger a panic selling as the lock-in for pre-IPO investors in the three companies expires over the next 10 days.
On Tuesday (November 15), 86 percent of Paytm's shares became free to trade after the lock-in period ended, allowing investors to sell shares that haven't yet been allowed into the market.
First Published: Nov 17, 2022 11:33 AM IST
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