Softbank exits Paytm at loss of around $150 million
The Hindu
Softbank Vision Fund exits Paytm at a $150 million loss, while Berkshire Hathaway Inc also sells shares at a loss.
Japan's Softbank investment arm Softbank Vision Fund exited from Paytm in the June quarter at a loss of around $150 million, sources aware of the development said.
Softbank invested about $1.5 billion in One97 Communications, the owner of Paytm brand, in tranches in 2017. “Softbank has exited Paytm at a loss of 10-12%. The total loss is around $150 million,” one of the sources said.
Softbank held around 18.5% stake in Paytm before the company's initial public offering (IPO) in 2021. It held a 17.3% stake through SVF India Holdings (Cayman) Ltd and 1.2% through SVF Panther (Cayman) Ltd.
SVF Panther sold its entire stake during the IPO for ₹1,689 crore, about $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 did anticipate loss at that time,” another source said.
Softbank had acquired Paytm shares at an average price of about ₹800 apiece.
Paytm share price was listed at ₹1,955, lower by 9%, and has not matched its issue price of ₹2,150 apiece to date.