Paytm on a downtick, shares skids by 10%; check out details

Paytm Share Price: Paytm shares fell nearly 10% in early morning trade on Thursday, November 17, as Japan-based Softbank sold a 4% stake in the Noida-based digital payments and financial services company in a block deal. The stock opened at Rs 562.75 per share on the NSE, down nearly 7% from its previous close of Rs 601.45. The sell-off dragged the stock to a day low of Rs 541.10, a drop of nearly 10%. At 10:10 a.m., the stock was trading at Rs 546.70.

Softbank’s action

Softbank’s decision to sell a 4.5 percent stake in One97 Communications for approximately USD 200 million (approximately Rs 1,627 crore) follows the end of the IPO lock-in period. Softbank is the company’s second largest shareholder, owning 17.5% of it. Softbank’s stake would be reduced to 13% following today’s stake sale.

Paytm debut in Stock market

Paytm debuted on the stock market on November 18 of last year. The stock is currently trading at 70% of its IPO issue price of Rs 2150. The scrip’s 52-week range is Rs 1,955 to Rs 510.05. Other new-age tech stocks that went public last year, such as Zomato, Nykaa, and PB Fintech, have also had difficult months on the stock market and have already fallen below their respective issue prices.

According to two sources familiar with the situation, Softbank has offered to sell shares held through its subsidiary SVF India Holding for a price range of Rs 555 to Rs 601.55 per share, as per the PTI report.

According to a media report, SoftBank, which owns 12.9% of Paytm, plans to sell 29 million shares, or 4.5% of the fintech company, on Thursday. Institutional investors can purchase the shares for 555-601.45. According to the report, if the sale is completed, SoftBank will receive at least 1,628.9 crore or $200 million.

The post Paytm on a downtick, shares skids by 10%; check out details appeared first on News24 English.

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