SOFTBANK WEIGHS SELLING A $1.5 BILLION STAKE IN PAYTM
Japan’s SoftBank is evaluating selling shares worth around $1.5 billion by starting its first tranche of dilution in the proposed initial share sale of One97 Communications Ltd, which runs the Paytm digital payments service, two people with direct knowledge of the matter said.
Paytm is planning an IPO worth around $3 billion, offering SoftBank its largest exit in India after Flipkart.
“A window to sell at least one-third of the overall stake on offer in the initial public offering (IPO) may be available on a pro-rata basis for the existing investors, including SoftBank. A total of 3-5% stake may be monetized by SoftBank and, even after the IPO, SoftBank will have holdings of at least 15% in One97 Communications. After the IPO, in subsequent issues, parts of the stake could be sold,” one of the two people said on condition of anonymity.
A spokesperson for SoftBank declined to comment.
The company does not have any information on share sales being planned by any existing investor and no shareholder has held any conversation with Paytm’s board on this, a Paytm spokesperson said.
SoftBank holds a 20% stake in One97 Communications. “SoftBank sees Paytm’s IPO as a significant liquidity event and the 3-5% stake of SoftBank could be sold through the offer for sale (OFS) route that could be opened simultaneously with the IPO,” said the first person.