Synopsis
According to media reports, several big block deals have taken place one after the other in the shares of Paytm. This had an impact on the shares of One 97 Communication (Paytm) during the trading session of 17 November. This is equivalent to Paytm’s 4.5 per cent stake. According to the reports, there has been a block deal of 2.95 crore shares of the company.
Detail
Paytm shares fell below Rs 600 per share on Thursday amid reports of SoftBank preparing to sell its shares through a block deal. During the pre-opening itself, the company’s shares fell by 6.43 per cent to Rs 562.75. The company’s shares opened at Rs 563.25, down 6.37 per cent, on the Bombay Stock Exchange.
Block deal worth Rs 2.95 crore in Paytm shares
According to media reports, several big block deals have taken place one after the other in the shares of Paytm. This had an impact on the shares of One 97 Communication (Paytm) during the trading session of 17 November. This is equivalent to Paytm’s 4.5 per cent stake. According to the reports, there has been a block deal of 2.95 crore shares of the company. However, the situation regarding which investors of the company are involved in this block deal is not yet clear.
Soft Bank sold its stake in the company!
SoftBank is believed to have sold its stake in the company. Explain that One 97 Communication operates financial services in the name of Paytm in India. In Thursday’s trading session, the company’s shares tumbled up to 9.3 per cent to Rs 545.55 per share. This is the lowest price of the company’s shares since July 26. Earlier, Bloomberg had said in a report that Soft Bank was keen to sell its $215 million stake in Paytm.
Why is SoftBank selling its stake?
SoftBank expects to raise around $200 million at the lower end of the price band of Rs 555. SoftBank is likely to get around USD 215 million after this deal. SoftBank had invested $1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth $220 million at the time of the IPO.
Paytm shares lock-in period is over
The lock-in period for Paytm shares is over. In such a situation, the investors who invested in the company before the IPO are now free to sell their stake. Soft Bank has suffered losses due to its investment in Paytm. He has invested about $ 1.6 billion in Paytm. During Paytm’s IPO in November last year, SoftBank sold its stake in Paytm worth around $22-250 million.
Paytm shares have broken up to 70 percent from the IPO price
Shares of Paytm have lost more than 70 per cent from the value at the time of IPO. The listing of the company’s shares in the stock market itself was accompanied by a drop in the value of the IPO. Soft Bank held 17.45 per cent stake in Paytm as on September 30 this year. This stake was acquired through SVF India Holdings. Now after the block deal, this stake is expected to come down to 13 per cent. Explain that SVF India Holding of Masayoshi Sons had bought Paytm shares at an average price of Rs 900 per share. In such a situation, according to the price at which Paytm shares closed on November 16, SVF India Holdings has suffered a loss of about 33 per cent on its investment.