SoftBank Sells $120 Mn Worth 2% Stake in Paytm
- ByStartupStory | May 11, 2023
SoftBank has announced the sale of more than 2% of its stake in One 97 Communications, the parent company of Paytm. According to an exchange filing by Paytm, “SVF India Holdings (Cayman) Limited disposed of 13,103,148 equity shares of One 97 Communications between February 10, 2023 and May 8, 2023. The sale translates to a stake sale of approximately 2.07% of its overall shareholding”.
According to BSE data, SVF India Holdings (Cayman) Ltd previously held a 13.24% stake, or 8.4 crore shares, in Paytm until February 18, 2023. However, by the end of March, their stake had decreased to 12.88% or 8.2 crore shares. SoftBank’s stake in the company will now be approximately 11.17%, or 7.1 crore shares, following the sale. Reports suggest that the deal was valued at approximately $120 million. In November of last year, SoftBank sold $200 million worth of Paytm shares, equivalent to 3 crore shares, after the company’s lock-in period for pre-IPO investors had ended.
Today, there was a decline in Paytm’s shares following reports of SoftBank’s stake sell. As of 12:45 PM IST, the shares were trading 2.8% lower at INR 706.9 on the BSE.
It is worth noting that SoftBank’s sale of shares comes at a time when Paytm is experiencing operational profitability, with its fundamentals growing stronger across business verticals. In Q4 FY23, Paytm’s net loss decreased by 78% YoY to INR 167.5 crore, and its operating revenue increased by 51% to INR 2,334.5 crore. Following its EBITDA profitability achievement in the December quarter, Paytm’s EBITDA before ESOP costs, which includes UPI incentive from the government, reached INR 101 crore in the March quarter.
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