SoftBank has recently engaged in further divestment from Paytm’s parent company, One97 Communications, selling an additional 2.17% stake through open market operations. This transaction has brought SoftBank’s total ownership down to 2.83%, marking a significant reduction in its investment position in the Indian tech giant.
SVF India Holding Limited, a subsidiary of SoftBank, disclosed the disposal of 13,784,787 equity shares of One97 Communications between January 23, 2024, and February 26, 2024. This series of disposals, including a significant transaction on February 25, 2024, has breached the 2% threshold specified in SEBI Takeover Regulation, prompting the disclosure.
Prior to this recent round of sales, SoftBank had already been offloading its shares in Paytm. Between December 19, 2023, and January 20, 2024, SoftBank divested 12,706,807 equity shares, amounting to approximately Rs 950 crores. This earlier divestment had reduced SoftBank’s stake from 7% to 5.01%.
Additionally, in November 2023, Warren Buffett’s Berkshire Hathaway made headlines by completely divesting its 2.46% stake with 830 crore rupees loss in Paytm, comprising 15,623,529 shares. Berkshire Hathaway had initially invested Rs 2,200 crores in Paytm in September 2018, and the complete exit from the investment resulted in proceeds of Rs 1,370 crores.
These divestments reflect a significant repositioning of major investors in Paytm, potentially indicating shifts in investor sentiment or strategic priorities within the Indian tech market.
