Shares of One97 Communications Ltd, owner of Paytm, recorded a series of block deals on Thursday in which around 29.50 million shares or 4.5 percent stake of the company changed hands, according to Bloomberg. Details of the buyers and sellers, however, were not known.
let's talk about paytm stock. The PayTM stock is under pressure as a pre-ipo investor has sold a large chunk as soon as the lock-in period has ended. There you have it down almost nine percent.
Softbank to sell Paytm shares worth $200 Million.
Japanese conglomerate SoftBank Group is looking to sell shares of Paytm parent One97 Communications worth $200 million through a block deal on Thursday, according to media reports.
BofA Securities is the banker for the deal, and the price range for the sale has been set at Rs 555-601. The lower end of the price band is a 7.7% discount to Wednesday’s close price of Rs 601.45 on the National Stock Exchange.
As of September 30, SoftBank held a 17.45% stake in the fintech firm through SVF India Holdings (Cayman) post the sale on Thursday -- its stake is likely to fall to 12.9%, reports said.
SoftBank had invested $1.6 billion in Paytm and had sold a partial stake worth $220-250 million in the initial public offering last year.
One the largest shareholders of paytm is SoftBank and it is the one which has done a large transaction in fact sources suggests that SoftBank has sold down with this large trade 25 percent of its overall holding in paytm and that leaves it with around 13 stake and sold is around four and a half percent stake at the moment.
so 561 rupees per share is the average price around. About 555 to 561 is the price at which SoftBank has sold down the shares of paytm as soon as the pre-ipo investors lock-in period ended. This is one year after the IPO has ended.
Now there are few things to look at here 830 rupees per share is the price at which SoftBank had invested in paytm and it is selling down at a huge loss on the other hand there is a 60 day now lock-in period as per semi Norms in which SoftBank will not be able to sell the remaining stake.
SoftBank stake in PayTM
So about 13% stake will remain with SoftBank at least for 60 day period. so that stock sale overhang is not there for 60 days at least from SoftBank.
Investments and one important aspect that I gauged is that the stock listed one year back at a 20 billion dollar valuation and now it is at four billion dollar valuation. so the new investors have come in at a huge discount to the IPO price and they may see some value and especially when they are long only fund but most of the investors have said that it's not an investment in the company but on the promoter of the company and his ability for execution is what the new investors have coming for.
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