After SoftBank Stake Sale, Paytm Shares Drop Over 10%: 10 Points
- Early investor Softbank selling a 4.5 per cent stake in the company was a trigger for the heavy sell-off witnessed today; Masayoshi Son-led SoftBank through SVF India Holdings held 17.45 per cent before selling 4.5 per cent on Wednesday.
- Softbank sold a part of the stake at Rs 555 – Rs 601 range which at the lower end was at a discount to its closing price on Tuesday.
- Most new-age tech stocks have been at the receiving end of investor fury. Paytm is among the worst hit in this lot.
- Analysts have attributed the opaque revenue model of these companies and their high valuations as the prime reasons for investor fury.
- Expiry of the lock-in period for pre-IPO investors is another reason for Paytm coming under intense selling pressure; As much as 85.76 per cent of the outstanding shares are now free to trade.
- When Paytm came up with an Rs 18,300-crore initial public offer (IPO) in November last year, it was billed as India's biggest issue.
- Paytm has lost 58.8 per cent in the year-to-date period. The BSE benchmark index, Sensex, in the same period has gained 4.55 per cent.
- Antfin (Netherlands) Holding BV; SVF India Holdings (Cayman) Limited; SAIF III Mauritius Company Limited; Alibaba.Com Singapore E-Commerce Private Limited; SAIF Partners India IV Limited; BH International Holdings are foreign investors Paytm, according to shareholding pattern available on BSE; Canada Pension Plan Investment Board is the foreign portfolio investor (FPI).
- Antfin (Netherlands) Holding B.V. is the single largest shareholder with a 24.88 per cent stake; China's Alibaba Group holds 6.26 per cent; Antfin is the fintech affiliate of Alibaba Group.
- Paytm's consolidated loss has widened to Rs 593.9 crore in the July-September period of this financial year; revenue from operations increased by about 76 per cent to Rs 1,914 crore.
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