Paytm Parent Company Shares End 1 Percent Day High After Falling Deeper
Shares of One97 Communications, Paytm’s parent company, ended more than 1 percent higher on Friday, after a day of sharp declines.
In morning trade, the stock fell 2 percent after SoftBank reduced its 4.5 percent stake in the company at Rs. 1,631 crore through open market transactions.
The stock fell 2.23% to Rs. 527.50 during the day on BSE. But it recovered all the lost ground and ended up with Rs. 546.30 each, up 1.25 percent.
On the NSE, it fell 2.38 percent to Rs. 526.90 during the day. The stock ended at Rs. 546.40 per share, a profit of 1.22 percent.
Shares of Paytm’s parent One97 Communications fell nearly 11 percent on Thursday.
Earlier this month, the closing period ended for investors who had invested in Paytm, which was listed on the stock exchange in November last year.
According to a filing with the National Stock Exchange (NSE) on Thursday, SVF India Holdings (Cayman) sold 2,93,50,000 shares, amounting to 4.5 percent of the company.
SVF India is a subsidiary of SoftBank.
The shares were discounted at an average price of Rs. 555.67 per piece, taking the value of the work to Rs. 1,630.89 million.
SoftBank is the second largest shareholder with a 17.45% stake in the company.
By posting the latest transaction, SoftBank’s shareholding will drop to 12.95 percent from 17.45 percent of the company.
SoftBank is selling 29 million shares in the deal led by Bank of America, according to a term paper.
The sale is the latest in a series of divestments that SoftBank has made in the past few months, after its flagship Vision Fund unit booked nearly $50 billion (roughly Rs. 4,08,150 crore) in losses in just six months.
