‘Softbank to sell 4.5% stake in Paytm for around $215 million’

Japanese investment major SoftBank will sell a part of its stake in One97 Communications, the parent company of Paytm, via a block deal valued at around $215 million. It will be looking to offload 4.5 per cent, according to sources, in the price band of Rs 555-Rs 601.55. That would amount to a discount of 7.72 per cent at the lower end of the band to the closing price of the stock on Wednesday of Rs 601.45.

SoftBank will hold a stake of 12.9 per cent or 84 million shares in the company. As of September 30, it held a 17.45 per cent stake through SVF Holdings (Cayman).

The payments player listed on the exchanges in November last year and the lock-in period after the IPO expired on November 15.

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Analysts have pointed out that some investors may choose to exit after the expiry of the lock-in period and that there could be an equity overhang. The stock is currently trading at more than 70 per cent lower than the IPO price.

Among the biggest shareholders are Alibaba Group Holding, Ant Group and SoftBank group. The business is currently valued at around $5 billion compared with roughly $15 billion at its peak. FE