Tokyo, Japan – In a series of open market transactions spanning from January 23, 2024, to February 26, 2024, Japanese tech conglomerate SoftBank has once again reduced its stake in Indian fintech giant Paytm. The investor informed stock exchanges of the sale of 1.37 crore shares, representing a 2.17% stake in Paytm during the specified time frame.
SVF India Holdings (Cayman) Limited, an entity associated with SoftBank, disposed of a total of 13,784,787 equity shares of One97 Communications Limited, breaching the 2% threshold specified in Regulation 29(2) of the SEBI Takeover Regulations on February 26, 2024. Following this transaction, SoftBank’s stake in Paytm has decreased from 5.01% to 2.83%.
This marks the second reduction in stake by SoftBank in Paytm this year, with the previous announcement of a 2% stake sale amounting to INR 950 crore ($114 million) in the previous month. The trend aligns with SoftBank’s ongoing strategy of reducing its holdings in various listed companies within its portfolio, including Zomato and Policybazaar, over the past year.
SoftBank has been actively divesting its stakes in its portfolio companies, with plans to participate in the initial public offerings (IPOs) of Ola Electric and FirstCry. The conglomerate, a significant international investor in the Indian startup ecosystem, revealed during its recent Q3 results that the fair value of its India investment portfolio reached nearly $14 billion as of December 2023.
Despite the reduction in SoftBank’s stake, Paytm faces challenges in the market. The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank, citing persistent non-compliances and material supervisory concerns. Consequently, Paytm’s shares experienced a downward trend, trading over 45% lower than their January 31 price when the central bank announced regulatory actions.
As of the latest trading session, Paytm shares were trading at INR 393.80 on the BSE, reflecting a 3.04% decline.
