SoftBank Group sells 2% stake in Paytm parent; holding down to 2.83%

Following the sale, SoftBank, through its affiliate SVF India Holdings (Cayman), holds a 2.83% stake in the company.

Also Read:

The sale of majority of its stake in the Paytm parent happened before the Reserve Bank of India’s diktat, barring Paytm Payments Bank from onboarding new customers and offering incremental banking services from March, due to concerns regarding breach of and compliance with regulatory norms.

The global investment firm saw uncertainty growing in India’s regulatory environment, as well as over Paytm Payments Bank’s license, Navneet Govil had told Bloomberg News earlier this month.

“We felt it was prudent to start monetizing,” Govil said, adding “We’re glad we did a good portion of Paytm before the recent stock correction.”

In February so far, shares of One 97 Communications have shed over 48%. On Thursday, the stock was down 3.4% on the National Stock Exchange at Rs 392.50.

Last week, the firm said that it will form a group advisory committee, chaired by former SEBI Chairman M Damodaran, to work with the board for strengthening compliance, and regulatory matters.

The committee will be chaired by 3 persons, namely Damodaran, Mukund Manohar Chitale, and Ramachandran Rajaraman, and the panel will work closely with the board, and induct additional members, as necessary.

Multiple stake sales over the last two years significantly brought down SoftBank’s stake in the payment gateway services provider. It was holding roughly 18.5% stake around the time of Paytm’s initial public offering in 2021.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)