SoftBank sells another 2% stake in Paytm for $250-$300 million; holding slips below 10%

SoftBank has sold an additional 2% stake in One 97 Communications, the parent of fintech major Paytm, generating proceeds of $250 million to $300 million, sources in the know told ET. This will take the Japanese investment major's stake in the firm below 10% for the first time, sources aware of the matter said.

Paytm is yet to make official disclosures on the transaction to Indian stock exchanges.

In May, SoftBank had sold a 2.07% stake in Paytm through a series of open market transactions that began in February. Paytm had informed the bourses about the sales as part of regulatory requirements.

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Prior to the latest transaction, SoftBank held around 11% in the Noida-headquartered fintech company. ET had reported earlier that SoftBank was planning to gradually sell its holdings in Paytm as it intends to exit the company completely.

News website Moneycontrol reported the development first on Tuesday.

China’s Alibaba also sold a 3.3% stake in Paytm recently.

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Paytm's stock has been on the upswing in recent months. Its current 52-week high is Rs 915, and the stock closed at Rs 851 on July 17. This is a strong revival from its 52-week low of Rs 439. On Tuesday, shares of Paytm were trading at Rs 851.50 per share at Rs 852, down 1.23%.

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Currently, the Alibaba and SoftBank-backed company has a market capitalisation of around Rs 54,000 crore ($6.5 billion).

The payments major is now betting on credit to revive its business and become profitable. In the March quarter of FY2023, Paytm announced a total income of Rs 1,936 crore, with overall expenditure at Rs 1,981 crore, and a net loss of Rs 203 crore.