Japan’s conglomerate SoftBank is all set to sell a part of its stake in Paytm’s parent company, One97 Communication, through a $200 million block deal. As of September 30, SoftBank had a 17.45 per cent stake in the fintech firm.
Multiple sources claimed that its shareholding would be reduced to 12.9 per cent after this sale.
The company had invested $1.6 billion in Paytm and had sold stakes worth $220 billion to $250 billion last year.
This sell-out is a continuation of several tightening measures underaken by the Masayoshi Son-led conglomerate.
Softbank's investment arm Vision Fund ended with a loss for the third straight quarter. Recently, the company has written down its investment in the troubled cryptocurrency exchange platform FTX from around $100 million to zero.
Paytm's stock prices also plummeted by almost 72 per cent from its issue price of Rs 2,150 last November, which also encouraged Softbank to hedge its bets and sell its stakes in the fintech unicorn.
The shares are being offered to multiple institutional investors at a price range of Rs 555-601.45. There is a 7.7 per cent discount on the closing price of Rs 601.3 at the lower end of the band.
Bank of America (BoA) is selected as the banker for the deal. The movement by SoftBank can earn them Rs 1,628 crore ($200 million).