According to sources with knowledge of the matter who spoke to ET, SoftBank has sold an additional 2% share in One 97 Communications, the company that owns the popular finance company Paytm, for $180 to $200 million.
According to people with knowledge of the situation, this will lower the Japanese investment major’s shareholding in the company below 10% for the first time.
SoftBank acknowledged the transaction in a filing to the BSE on Thursday morning. “SVF India Holdings (Cayman) Limited has disposed of an aggregate of 12,771,434 equity shares of One 97 Communications Limited in a series of disposals undertaken between May 9, 2023, and July 13, 2023,” it said.
Through an array of transactions on the open market that started in February, SoftBank sold a 2.07% stake in Paytm in May.
As part of its obligations under the regulations, Paytm has alerted the bourses about the sales.
Before the most recent purchase, SoftBank owned about 11% of the Noida-based fintech business. Earlier, ET had claimed that SoftBank intended to progressively divest its Paytm interests in order to fully quit the business.
The price of Paytm has been increasing recently. Its 52-week high is currently Rs 915, while on July 17, the stock finished at Rs 851. This is a significant increase over the 52-week low of Rs. 439. Shares of Paytm were down 1.23% on Tuesday, trading at Rs 851.50 per share at Rs 852.
The Alibaba and SoftBank-backed business currently has a market value of roughly Rs 54,000 crore ($6.5 billion).
The industry leader in payments is increasingly relying on loans to grow its clientele and turn a profit. Paytm reported total revenue of Rs. 1,936 crore for the March quarter of FY2023, total expenses of Rs. 1,981 crore, and a net loss of Rs. 203 crore.
SoftBank selling
Both public and private companies in SoftBank’s India portfolio have been selling their holdings. It recently sold a portion of its investment in Lenskart during a $600 million funding round, the majority of which was accomplished through the sale of secondary shares.
Additionally, there have been discussions with investors about reducing its stake in FirstCry, which is preparing for an IPO. According to estimates, SoftBank made between $90 and $100 million from the Lenskart transaction.
It also made almost $130 million in March by selling interests in the logistics company Delhivery.
SoftBank has left India in total for $6 billion, including the 2018 sale of its Flipkart holding to Walmart. The organization supported Flipkart once more in 2021 as part of a $3.6 billion fundraising round for the industry leader in online shopping.
The most recent Paytm disposal comes from SoftBank’s $1 billion worth of liquid stocks, which were part of its holdings.
From its Vision Fund II, it has placed fresh wagers on companies including Flipkart, Elastic Run, Meesho, and others. In the domestic market, it has yet to write a new check this year.
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