SoftBank Vision Funds India Holdings (Cayman) Ltd is likely to sell $215 million worth of shares in Paytm's parent company One97 Communications Ltd via a block deal tomorrow (November 17), sources privy to the developments told CNBC-TV18.
The floor price has been fixed at a price range of Rs 555 to Rs 601.45, at a 7.72 percent discount from the current market price (CMP). BofA Securities is the broker of the deal.
SoftBank Vision Funds (SVF) India Holdings (Cayman) holds a 17.47 percent stake in Paytm. SVF holds a 5.77 percent stake in PB Fintech.
On Tuesday (November 15), 86 percent of Paytm's shares became free to trade after the end of the lock-in period, allowing investors to sell shares that haven't yet been allowed onto the market.
One97 shares fell over 3.5 percent to Rs 603.95 on Wednesday, November 16, far below its IPO price of Rs 2,150 a share.
Alibaba Group Holding Ltd and its fintech affiliate Ant Group Co are the biggest shareholders in One97 Communications. Alibaba.Com 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 holds 2.41 percent.
Paytm has impressed its investors with continued strong performance. The company recently announced Q2 FY23 financials and posted a 76 percent year-on-year (YoY) growth in revenue to Rs 1,914 crore.
Meanwhile, the company's losses fell by 11 percent on a sequential basis. Paytm’s contribution profit surged 224 percent year-on-year to Rs 843 crore.
On Monday, November 14, the company announced that in its rapidly-growing lending business, it had disbursed 3.4 million loans in October, registering a YoY growth of 161 percent.
The value of total loans disbursed in October grew to Rs 3,056 crore ($407 million, year-on-year growth of 387 percent). Paytm's leadership in offline payments strengthened further with its total merchant subscription devices deployed increasing to 5.1 million.
For October, the total merchant GMV processed through Paytm aggregated to Rs 1.18 lakh crore ($14 billion), registering a YoY growth of 42 percent.
