SoftBank offloads 2% stake worth $120 million in Paytm to meet SEBI takeover rules
1 min read 11 May 2023, 10:46 PM ISTIn November 2022, the Japanese conglomerate sold around 4.5 per cent stake in Paytm for ₹1,631 crore through an open market transaction.
PremiumSoftBank informed the stock exchanges that it has offloaded a little over a 2 percent stake in One97 Communications Limited - the parent entity of Paytm, in a series of open market transactions since February 2023, to comply with the capital market regulator SEBI's takeover regulations.
"SVF India Holdings (Cayman) has disposed of an aggregate of 13,103,148 equity shares of One 97 Communications Limited in a series of disposals undertaken between February 10, 2023 to May 8, 2023, with the disposal on May 8, 2023 breaching the 2 per cent threshold specified in Regulation 29(2) of the SEBI Takeover Regulations," SoftBank said in a regulatory filing to the stock exchanges.
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SVF India Holdings (Cayman) Ltd, a SoftBank arm, has sold 13,103,148 shares between February 10, 2023, and May 8, 2023, which represents approximately 2.07 per cent of the total shareholding, according to data sourced from the stock exchange filing.
As a result of the stake sale, SoftBank's 13.24 per cent stake in Paytm has now reduced to 11.17 per cent, which is around 70,809,082 shares. The market value of the total sale was not declared in the regulatory filing but media reports said that it could be worth around $120 million.
In November 2022, the Japanese conglomerate sold around 4.5 per cent stake in Paytm for ₹1,631 crore through an open market transaction. SoftBank had invested $1.6 billion in Paytm in 2017 and offloaded shares worth $220 million at the time of its mega IPO.
Last week, Paytm announced its Q4FY23 results reporting a consolidated net loss narrowed sharply to ₹168.4 crore in the fourth quarter of FY23, compared to a loss of ₹761.4 crore in the corresponding period last year.
In terms of the top-line front, Paytm's revenue from operations stood at ₹2,334.5 crore in Q4FY23, registering a growth of 51.5 per cent from ₹1,540.9 crore in Q4FY22 and up by 13.2 per cent from ₹2,062.2 crore.
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