[ad_1]
MUMBAI: SoftBank has cut another 2.1% stake in Paytm, reducing its shareholding in the fintech firm to 2.8%, the company said in a recent stock exchange filing. The Japanese investment behemoth which bets heavily on tech firms has invested over $1 billion into Paytm and held about 18% stake in the Noida-based company at the time of its initial public offering (IPO) in 2021.
Even as SoftBank has been offloading stakes in the firm, the recent development also comes at a time when Paytm Payments Bank (PPBL) has come under regulatory scrutiny due to persistent non-compliance. Paytm founder and CEO Vijay Shekhar Sharma is the largest shareholder in PPBL with a 51% stake while Paytm parent One 97 Communications holds a 49% stake in the banking entity whose operations have been restricted by the Reserve Bank of India (RBI). The central bank has has directed PPBL to stop accepting money in any customer account, including wallets and other prepaid instruments such as FASTags, NCMC (national common mobility cards used in metro and other transport) or any other instrument after March 15 following lapses complying with the regulatory framework on KYC and relationship with parent.
SoftBank’s affiliate SVF India Holdings (Cayman) sold 13.8 million Paytm shares through open market transactions between January 23-February 26, 2024, the filing showed. The firm had sold about 12.7 million shares of Paytm through similar transactions between December 19, 2023-January 20, 2024, offloading 2% stake in the process and bringing its shareholding down to the fintech to 5.06%.
SoftBank which has backed a clutch of Indian unicorns like Ola Electric, Oyo and Swiggy has been paring its stake in local startups. Recently, it fully exited PB Fintech which runs Policybazaar and Zomato. In November, Warren Buffett’s Berkshire Hathaway had exited Paytm by selling its 2.46% stake in the startup.
Share price of Paytm closed at Rs 405.2 apiece on the BSE on Thursday, down 0.2%.
Even as SoftBank has been offloading stakes in the firm, the recent development also comes at a time when Paytm Payments Bank (PPBL) has come under regulatory scrutiny due to persistent non-compliance. Paytm founder and CEO Vijay Shekhar Sharma is the largest shareholder in PPBL with a 51% stake while Paytm parent One 97 Communications holds a 49% stake in the banking entity whose operations have been restricted by the Reserve Bank of India (RBI). The central bank has has directed PPBL to stop accepting money in any customer account, including wallets and other prepaid instruments such as FASTags, NCMC (national common mobility cards used in metro and other transport) or any other instrument after March 15 following lapses complying with the regulatory framework on KYC and relationship with parent.
SoftBank’s affiliate SVF India Holdings (Cayman) sold 13.8 million Paytm shares through open market transactions between January 23-February 26, 2024, the filing showed. The firm had sold about 12.7 million shares of Paytm through similar transactions between December 19, 2023-January 20, 2024, offloading 2% stake in the process and bringing its shareholding down to the fintech to 5.06%.
SoftBank which has backed a clutch of Indian unicorns like Ola Electric, Oyo and Swiggy has been paring its stake in local startups. Recently, it fully exited PB Fintech which runs Policybazaar and Zomato. In November, Warren Buffett’s Berkshire Hathaway had exited Paytm by selling its 2.46% stake in the startup.
Share price of Paytm closed at Rs 405.2 apiece on the BSE on Thursday, down 0.2%.
#SoftBank #cuts #stake #Paytm
