Shares of Paytm’s parent company One 97 Communications fell as much as 10% to their lowest since May after Reuters reported that SoftBank would sell up to $215 million worth of shares in the platform. India’s electronic payment platform. SoftBank is selling a 4.5% stake in Indian e-payments giant Paytm’s parent company One 97 Communications for up to $215 million through a block deal, according to a terms table reviewed by Reuters. .
by SoftBank Vision Fund is the second largest shareholder of pay, whose stock has fallen more than 60% since it went public a year ago. SoftBank has a 17.5% stake in the fintech and digital payments company as of September 30.
The shares are being sold in a range of Rs. 555 to Rs. 601.45 per share, the term sheet said, the lower end of the range offering a 7.7% discount from the company’s final closing price. The final price will be set later on Thursday.
The sale is the latest in a string of divestments that SoftBank has made over the past few months, after its flagship Vision Fund unit recorded a loss of nearly $50 billion (approximately Rs 4,08,150). ) in just six months.
The stocks are being bought largely by hedge funds, including Millennium Capital, Segantii Capital Management, Ghisallo Capital Management, with other buyers, said a person with direct knowledge of the matter. including Norges Bank, Norway’s central bank. is still a secret.
SoftBank, Paytm, Millennium, Segantii, Ghisallo and Norges Bank did not respond to requests for comment.
SoftBank is selling 29 million shares in a deal led by Bank of America, according to the terms sheet.
The news comes a day after the lock-up period for investors in Paytm’s November 2021 initial public offering ended. The company’s shares opened on Thursday at Rs. 546.05, 9% below the previous close.
SoftBank has raised $2.4 billion (approximately Rs 19,600 crore) to sell shares in T Mobile America earlier this year.
The Vision Fund sold a range of properties in the April-June quarter – including a ride-hailing service Uber and real estate platforms Opendoor and KE Holdings, which operate China’s Beike – with a net profit of $5.6 billion (about Rs 45,700 crore).
Paytm went public last year in India’s biggest ever public offering (IPO), but shares have slipped as low as 70% from list price. in the months following the IPO.
While SoftBank has invested $1.6 billion (approximately Rs 13,060 crore) in the digital payments company over the years, one of its biggest investments in India, given the share price Currently of Paytm, the 17.5% stake SoftBank held in the company prior to Thursday’s share sale is valued at just around $900 million (about Rs 7,350 crore).
© Thomson Reuters 2022
