Shares of Paytm’s parent firm One 97 Communications Ltd on Thursday dropped as much as 10 per cent to their lowest since May after SoftBank Group Corp will sell shares worth up to $215 million in the Indian e-payment platform, as reported by Reuters on Thursday.
The stock is being sold in a range of Rs 555 to Rs 601.45 per share, according to a term sheet reviewed by the news agency.
SoftBank Group Corp eyes to sell shares worth up to $215 million in Indian e-payments giant Paytm’s parent One 97 Communications Ltd through a block deal, according to a term sheet reviewed by Reuters.
As of September 30, SoftBank had a 17.5 per cent stake in the digital payments and fintech company. The lower end of the range is at a 7.7 per cent discount to the company’s last closing price. The final price in the sale will be set later on Thursday.
The sale is the latest in a string of divestments that SoftBank has made in the past few months, after its flagship Vision Fund unit booked nearly $50 billion in losses in just six months.
SoftBank and Paytm did not respond to Reuters requests for comment.
SoftBank is selling 2.9 crore shares in the deal which is being led by Bank of America, according to the term sheet. The news comes a day after the lock-in period for investors in Paytm’s November 2021 initial public offering closed. Shares of the company settled 4 per cent lower on Wednesday at 601.30 rupees, after touching a five-month low.
SoftBank raised $2.4 billion selling shares in T-Mobile US earlier this year. Vision Fund sold a range of assets in the April-June quarter – including ridehailer Uber Technologies and property platforms Opendoor Technologies and KE Holdings, which operates China’s Beike – for a realised gain of $5.6 billion.
The stocks of Paytm, at 12 pm, were trading at Rs 549.35, down 8.68 per cent on the BSE on Thursday.