“SoftBank has exited Paytm with a loss of 10-12 percent. The total loss is around USD 150 million,” said one of the sources.
SoftBank owns around 18.5 percent stake in Paytm ahead of the company’s initial public offering (IPO) in 2021. It held 17.3 percent through SVF India Holdings (Cayman) Limited and 1.2 percent through SVF Panther (Cayman) Limited.
SVF Panther sold its entire stake during the IPO at Rs. 1,689 crores, about USD 225 million.
“Softbank announced that it will exit Paytm in 24 months from the time of the IPO. The exit was in line with Softbank’s plan. However, the company anticipated losses at that time,” another source said.
Softbank shares of Paytm at around Rs. 800 was acquired at an average price of Rs.
Paytm share price Rs. 1,955, down 9 percent, and its issue price to date stands at Rs. 2,150 does not match.
Paytm’s share price fell further after the Reserve Bank of India (RBI) barred its associate firm Paytm Payments Bank Ltd (PPBL) from carrying out transactions. It was on May 9 at Rs. 310 reached an all-time low.
In the fourth quarter of 2023-24, Paytm’s loss widened to Rs. 550 crore was recorded.
During the quarter under review, the company paid Rs. 227 crore of disinvestment, future uncertainties associated with its business operations including uncertainty of any other regulatory developments etc.
For the year ended March 31, 2024, the company’s loss fell to Rs. 1,422.4 crores. Paytm in FY23 had Rs. 1,776.5 crores was reported as a loss.
Billionaire Warren Buffett’s Berkshire Hathaway Inc also exited Paytm nearly seven months ago by selling shares at less than the purchase price.
According to an official document, the company paid Rs. 2,179 crore at a total cost of Rs. 1,279.7 per share acquired 2.6 per cent stake in Paytm.
The disposal of shares averaged Rs. 877.29, which in November had a transaction value of Rs. 1,370.63 crores.
Shares of Paytm closed at Rs 467.25 on Friday.
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