Softbank to sell Paytm shares worth $215 million

SoftBank will sell a part of its stake in One97 Communications, the parent company of Paytm, via a block deal valued at around $215 million. It will be looking to offload 4.5%, according to sources, in the price band of 555-601.55. That would amount to a discount of 7.72% at the lower end of the band to the closing price of the stock on Wednesday of ₹601.45.

SoftBank will hold a stake of 12.9% or 84 million shares in the company. As of September 30, it held a 17.45% stake through SVF Holdings (Cayman).

The payments player listed on the exchanges in November last year and the lock-in period after the IPO expired on November 15.

Analysts have pointed out that some investors may choose to exit after the expiry of the lock-in period and that there could be an equity overhang. The stock is currently trading at more than 70% lower than the IPO price.

Among the biggest shareholders in the company are Alibaba Group Holding and its fintech affiliate Ant Group and SoftBank group. The shares of One97 Communications were priced at ₹2, 150 apiece but have been trading way below that since the listing. The business is currently valued at around $5 billion compared with roughly $15 billion at its peak.