February 18, 2024
SoftBank Entity Continues Stake Reduction in Paytm Parent, One 97 Communications
Finance Stock Markets

SoftBank Entity Continues Stake Reduction in Paytm Parent, One 97 Communications

SoftBank Entity Continues Stake Reduction in Paytm Parent, One 97 Communications/Bloomber

SoftBank Entity Continues Stake Reduction in Paytm Parent, One 97 Communications

  • SVF India Holdings, a SoftBank entity, sold an additional stake in One 97 Communications, the parent company of Paytm.
  • The entity disposed of 12,706,807 equity shares through open market transactions between December 19, 2023, and January 20, 2024.
  • Following the divestment, SVF India Holdings’ stake in One 97 Communications now stands at 5.01%.

Ownership Changes in Paytm

  • As of Q3 FY24, foreign institutional investors (FIIs) collectively held a 63.7% stake in Paytm, while domestic institutional investors (DIIs) increased their stake to 6.1%.
  • Retail investors reduced their stake to 30.2% in Q3 FY24, compared to 35% in the previous quarter.
  • Paytm founder and CEO, Vijay Shekhar Sharma, holds a 19% stake in the company.

Q3 FY24 Financial Performance

  • Paytm reported consolidated losses narrowing to ₹222 crore in Q3 FY24, compared to ₹392 crore in the same period last year.
  • Revenue rose by 38% to ₹2,850 crore, with the payment business contributing significantly.
  • Paytm surpassed 100 million active customers for the first time in Q3 FY24.

Market Response and CLSA Upgrade

  • Global brokerage firm CLSA upgraded Paytm from ‘outperform’ to ‘buy’ and raised the target price to ₹960 from ₹925 in response to Q3 performance.

SoftBank’s continued reduction in its stake and Paytm’s operational milestones and financial improvements are noteworthy developments in the company’s recent trajectory.

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