Why Are Paytm Shares Tanking Nearly 3% Today?

Shares of One97 Communications, the parent company of Paytm, declined nearly 3% on Tuesday after Japanese investor SoftBank offloaded an additional 2% stake in Paytm.

What Happened? Softbank has sold 1.27 crore equity shares in the fintech firm stake over the past month through open market operations, the company confirmed in an exchange filing. The investor likely made around $300 million (₹2,460 crore) from the trades.

SoftBank has been regularly offloading shares in small tranches through open market transactions, largely at a profit, as Paytm’s share price has been consistently above ₹830 per share during the period, which was the cost price for the Japanese investor. This marks the first time SoftBank managed to sell Paytm shares at a profit since the fintech got listed in November 2021.

See Also: Chart: How Paytm, Nykaa, Other New-Age Tech Stocks Have Performed Since IPO

In June, it was previously reported that SoftBank would be selling minor stakes in Paytm and Zomato through open market operations as both stocks had turned profitable for the investor.

SoftBank has been reducing its stake in Paytm since November, when the one-year lock-in period for the stock ended, either through open market operations or block deals. With the latest sale, SoftBank’s stake in Paytm has come down to 9.15%.

Price Action: Paytm’s share price was down 2.8%, trading at ₹838.15 in late afternoon trade on Tuesday.

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