Softbank to sell Paytm stake for $200 mn
MUMBAI: Japan’s Softbank will sell a third of its stake in One97 Communications Ltd, the owner of the Paytm payments app, through a $200 million block deal, according to deal terms reviewed by Mint.
Softbank, which owns 12.9% of Paytm, plans to sell 29 million shares or 4.5% of the fintech company on Thursday.
The shares are being offered to institutional investors at ₹555-601.45. At the lower end of the band, it is a 7.7% discount to the closing price of ₹601.3 on Wednesday.
If completed, the sale will fetch Softbank at least ₹1,628.9 crore or $200 million.
Bank of America is the sole broker of the transaction. The sale follows the end of one-year mandatory lock-in for pre-ipo investors in Paytm. Paytm started trading on the bourses on November 15, 2021 after raising ₹18,300 crore in an initial share sale, the second biggest IPO so far in India. However, Paytm’s journey as a publicly traded firm quickly turned sour as the stock slumped 27% on market debut from its issue price of ₹2,150 apiece.
Amid the global tech slowdown that started last year, Paytm stock has remained below its IPO issue price, closing at ₹601.30 on Wednesday. The stock is trading at a 72% discount to its issue price.