NEW DELHI: Shares of One 97 Communications Ltd., the parent of India’s leading digital payments brand Paytm, plunged in Mumbai as a unit of Japan’s SoftBank Group Corp. offered to lower its stake in the company.
About 29.5 million shares, equivalent of 4.5% of the Mumbai-listed firm’s equity capital, were traded in a single block on India’s National Stock Exchange, according to data compiled by Bloomberg. The trade pulled down shares of Paytm as much as 10%, their biggest plunge since July 29.
Shares of Paytm have tumbled since its initial public offering last year, forcing some of its key investors to rethink on their ownership, amid global macro uncertainty. Softbank’s SVF India Holdings (Cayman) Ltd. offered 29 million shares of Paytm at 555 rupees ($6.8) to 601.45 rupees each, according to terms of the deal obtained by Bloomberg News on Wednesday.
Paytm is among a number of startups that went public last year amid a boom in IPOs and zest for the country’s tech sector that have since suffered a slump in market value.
When Paytm’s founder Vijay Shekhar Sharma pulled off the IPO last November, it was largest seen in the Indian market up to that point. The company raised 183 billion rupees ($2.3 billion), but its shares went on plummet in what would become one of the Indian bourse’s worst-ever debuts as investors shunned its high valuation and loss-making startup status.
SoftBank is one of Paytm’s biggest shareholders, along with Alibaba Group Holding Ltd. and its fintech affiliate Ant Group Co. After the sale, it will hold roughly 12.9% of the company.
The world’s biggest technology investor has been grappling with declines on its portfolio of more than 400 investments in both public and private tech companies around the world. Its core Vision Fund segment posted a $7.2 billion loss in the July-September quarter, following a record 2.33 trillion yen ($17 billion) loss in the preceding period.
The lock-up period on $4.3 billion worth of Paytm shares expired on Tuesday, freeing investors to sell shares after they endured a year in which the company shed more than $12 billion of market value.
FSN E-Commerce Ventures Ltd., owner of beauty e-retailer Nykaa has seen selling by some holders, including private equity firm TPG Inc, since a lock-up on its shares ended last week.
Meanwhile, food-delivery company Zomato Ltd. plunged to a record low in July when a lock-up on its shares expired. Zomato’s successful IPO last year had set the tone for a generation of buoyant Indian unicorns to make their stock market debuts.
About 29.5 million shares, equivalent of 4.5% of the Mumbai-listed firm’s equity capital, were traded in a single block on India’s National Stock Exchange, according to data compiled by Bloomberg. The trade pulled down shares of Paytm as much as 10%, their biggest plunge since July 29.
Shares of Paytm have tumbled since its initial public offering last year, forcing some of its key investors to rethink on their ownership, amid global macro uncertainty. Softbank’s SVF India Holdings (Cayman) Ltd. offered 29 million shares of Paytm at 555 rupees ($6.8) to 601.45 rupees each, according to terms of the deal obtained by Bloomberg News on Wednesday.
Paytm is among a number of startups that went public last year amid a boom in IPOs and zest for the country’s tech sector that have since suffered a slump in market value.
When Paytm’s founder Vijay Shekhar Sharma pulled off the IPO last November, it was largest seen in the Indian market up to that point. The company raised 183 billion rupees ($2.3 billion), but its shares went on plummet in what would become one of the Indian bourse’s worst-ever debuts as investors shunned its high valuation and loss-making startup status.
SoftBank is one of Paytm’s biggest shareholders, along with Alibaba Group Holding Ltd. and its fintech affiliate Ant Group Co. After the sale, it will hold roughly 12.9% of the company.
The world’s biggest technology investor has been grappling with declines on its portfolio of more than 400 investments in both public and private tech companies around the world. Its core Vision Fund segment posted a $7.2 billion loss in the July-September quarter, following a record 2.33 trillion yen ($17 billion) loss in the preceding period.
The lock-up period on $4.3 billion worth of Paytm shares expired on Tuesday, freeing investors to sell shares after they endured a year in which the company shed more than $12 billion of market value.
FSN E-Commerce Ventures Ltd., owner of beauty e-retailer Nykaa has seen selling by some holders, including private equity firm TPG Inc, since a lock-up on its shares ended last week.
Meanwhile, food-delivery company Zomato Ltd. plunged to a record low in July when a lock-up on its shares expired. Zomato’s successful IPO last year had set the tone for a generation of buoyant Indian unicorns to make their stock market debuts.
