Japanese multinationalis looking to sell $215 million worth of shares in the payments company on Thursday, news reports said. This comes just after the blackout period for investors in the company expired on November 15, a year after it debuted on the public markets worth $18.7 billion.
According to Bloomberg, BofA values has been appointed as the banker for the block deal, with share prices ranging from Rs 555 to Rs 601. SoftBank is expected to sell 29 million shares in Paytm. This is at a 7.7% discount from Paytm’s closing price on Wednesday, which stood at Rs 601.55 per share on BSE.
AntFin Holding B.V.The Netherlands-based entity of Alibaba’s fintech arm, Ant Financial, is Paytm’s largest shareholder with a 24.9% stake in the company, followed by SoftBank Vision Fund, which owns 17.5% of the shares. actions of the company.
SoftBank I Vision Fund it had invested $1.4 billion in Paytm, as of 2017, and had managed to collect $220 million to $250 million during the company’s IPO last year. In May 2022, SoftBank Group Corp said Paytm’s poor performance in the public markets had caused a $600 million loss on its Vision Fund I portfolio for the fiscal year ending March 31, 2022.
For the quarter ended June 30, 2022, SoftBank reduced its investment in Paytm by $400 million. The fair value of SoftBank’s investments in Paytm stood at nearly $1 billion based on June 2022 filings.
Paytm shares have lost almost 72% over the year, compared to its issue price of Rs 2,150. For the quarter ending September 2022, Paytm widened its consolidated loss to Rs 571 crore, compared with Rs 472.90 crore in the same period a year earlier. The company’s revenue from operations increased by 76% to Rs 1914 crore year on year.