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Business News/ Markets / Stock Markets/  Warren Buffett’s Berkshire Hathaway exits Paytm, sells complete 2.46% stake

Warren Buffett’s Berkshire Hathaway exits Paytm, sells complete 2.46% stake

  • Berkshire Hathaway sold 1.56 crore shares or 2.5 per cent of equity worth nearly 1,370 crore at an average share price of 877.29, according to NSE data.

Warren Buffett, chairman of Berkshire Hathaway Inc. Photographer: Andrew Harrer/Bloomberg News

Warren Buffet-owned Berkshire Hathaway has sold its entire stake in One97 Communications Ltd, the parent company of fintech major Paytm, in a large block deal on Friday, November 24.

Berkshire Hathaway Inc through its affiliate BH International Holdings sold more than 1.56 crore shares or 2.5 per cent of the fintech giant, according to bulk deal data on the National Stock Exchange (NSE).

According to NSE data, BH International Holdings offloaded 1,56,23,529 shares, amounting to a 2.46 per cent stake in Noida-headquartered Paytm. The shares were disposed of at an average price of 877.29 apiece, taking the transaction value to 1,370.63 crore.

Meanwhile, Copthall Mauritius Investment picked up 75,75,529 shares and Ghisallo Master Fund LP acquired 42.75 lakh shares, amounting to a 1.19 per cent and 0.67 per cent stake in Paytm, respectively. Buffett had picked up a 2.6 per cen stake in Paytm in 2018, investing nearly 2,200 crore, valuing the leading fintech giant at $10–12 billion, according to reports.

Also Read: Paytm Q2 Results: Revenue rises 32% YoY on steady loan growth; losses narrow

Paytm reported a 32 per cent year-on-year rise in its revenue to 2518.6 crore in the July-September quarter of fiscal 2023-24 (Q2FY24). The fintech major had reported revenue of 1914 crore in the year-ago period. The net loss (attributable to owners) narrowed down to 290.05 crore in the September quarter of current financial year.

The company reported a sequential rise of 7 per cent in its revenue from 2,341 recorded in June quarter of the current financial year. On a quarterly basis, Paytm reported a marginal increase of 7 percent as it saw its revenue recorded at 2,341 crore in the June quarter of current fiscal. During the last quarter, it reported a net consolidated loss of 357 crore.

Founded by Vijay Shekhar Sharma in 2000, One97 started out as a mobile payments and mobile recharge business and currently ranks among the top three consumer internet companies in the country. It has created a host of payment solutions where consumers can transact via the Paytm wallet and Paytm Payments Bank.

On Friday, shares of Paytm opened at 922.75 and plunged more than 4 .5 per cent to hit an intra day low of 880. Shares settled 3.23 per cent lower at 893 apiece on the BSE.

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