Home / Companies / News /  Softbank to sell Paytm stake worth $200 mn via block deal

MUMBAI : Japan’s SoftBank will sell a third of its stake in One97 Communications Ltd, the owner of the Paytm payments app, through a $200 million block deal, according to deal terms reviewed by Mint.

SoftBank, which owns 12.9% of Paytm, plans to sell 29 million shares or 4.5% of the fintech company on Thursday.

The shares are being offered to institutional investors at 555-601.45. At the lower end of the band, it is a 7.7% discount to the closing price of 601.3 on Wednesday. If completed, the sale will fetch SoftBank at least 1,628.9 crore or $200 million.

Bank of America is the sole broker of the transaction. The sale follows the end of one-year mandatory lock-in for pre-IPO investors in Paytm. Paytm started trading on the bourses on 15 November 2021 after raising 18,300 crore in an initial share sale, the second biggest IPO so far in India. However, Paytm’s journey as a publicly traded firm quickly turned sour as the stock slumped 27% on market debut from its issue price of 2,150 apiece.

Amid the global tech slowdown that started last year, Paytm stock has remained below its IPO issue price, closing at 601.30 on Wednesday. The stock is trading at a 72% discount to its issue price.

Similar block trades have been seen in other tech firms. Investors such as Uber and Tiger Global liquidated part of their holdings in Zomato when its IPO lock-in expired earlier this year.


Swaraj Singh Dhanjal

" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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