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Softbank to sell Paytm stake worth $200 mn via block deal
Softbank is selling 29 million shares in the secondary offering, representing 4.5% stake in Paytm, around a third of its 12.9% stake in the fintech company
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.
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First Published:16 Nov 2022, 06:46 PM IST
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