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

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

VoM News Desk | January 24, 2024 | 02:42 PM IST | Breaking News | Follow on Google News

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.

VoM News Desk

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