Paytm trades in red after Softbank offloads 2% stake

Shares of One97 Communications Ltd, the parent company of Paytm, declined 2 percent to Rs 844.50 on July 18 at 12:04pm, after SoftBank offloaded 2 percent additional stake in Paytm.

SoftBank had sold 2 percent stake in One97 Communications Ltd, its biggest listed investment in India, over the past month through open market operations, generating about $300 million.

This is yet another instance of the Japanese investor monetising its bets in the country, its third-largest investment destination amid a funding drought.

SoftBank, through open market transactions, has been offloading shares regularly over the last month in small tranches and largely at a profit as Paytm’s share price has been above Rs 830 during the period, which was the cost price for the Japanese investor.

This is the first time that the Japanese investor managed to sell shares of Paytm at a profit since the fintech got listed in November 2021.

In June, it was first reported that SoftBank will be selling minor stakes in Paytm and Zomato through open market operations as the two stocks had finally turned profitable for the Japanese investor.

SoftBank has been paring stake in Paytm since November, when the one-year lock-in period for the stock ended either through open market operations or block deals. With the current sale, SoftBank’s stake in Paytm has come down to 9.15 percent.

Earlier this week Paytm was in focus after One97 Communications Limited, the owner of Paytm, announced the signing of a memorandum of understanding with the Goa government to facilitate digital payments, a senior official said.

Paytm is expected to deploy its payment devices like Paytm QR code, soundbox and card machines in all departments, including panchayats and municipalities, where users can make payments for electricity, water, and municipal taxes.

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