Softbank sells another 2% stake in Paytm, total holding now below 10%

Earlier in May, Softbank had sold another 2.07 per cent of its stake in Paytm through a series of open market operations starting February

Softbank has sold another 2 per cent of its stake in One97 Communications, the parent company of Paytm, for around $180-$200 million, it said in a regulatory filing. This has taken the total holding of the Japanese investment major in the Indian fintech company below 10 per cent to 9.15 per cent for the first time.

"SVF India Holdings (Cayman) Limited has disposed of an aggregate of 12,771,434 equity shares of One97 Communications Limited in a series of disposals undertaken between May 9, 2023, and July 13, 2023, with the disposal on July 13, 2023, breaching the 2 per cent threshold specified in Regulation 29(2} of the SEBI Takeover Regulations," the regulatory filing said.

Earlier in May, Softbank had sold another 2.07 per cent of its stake in Paytm through a series of open market operations starting in February. Before this, Softbank held an 11 per cent stake in the Noida-based company.

According to earlier reports, Softbank is looking to exit Paytm completely by gradually selling its stake.

Also Read: SoftBank looking to book profits by selling shares in Zomato, Paytm: Report

According to a report by Moneycontrol, the stake sold in May was the first time that the Japanese investor managed to sell shares of Paytm at a profit since the fintech company got listed in November 2021.

Earlier this month, Paytm reported a 167 per cent growth in the value of loan disbursements for the quarter-to-date period. It distributed loans amounting to Rs. 14,845 crore in Q1 of FY24, a significant rise from Rs. 5,554 crore in Q1 of FY23.

The company also saw the number of loan disbursements rise in Q1 of FY24.

It distributed 12.8 million loans in Q1 of FY24 from 8.5 million loans in the same period of the previous financial year, a 51 per cent rise.

"Our focus remains on asset quality by continuously reviewing our partner's cohort data and tightening credit policy wherever needed. This reflects in the growth of the value of loans distributed in the quarter," the company said in an operating performance update.