28 C
Sunday, July 21, 2024

Paytm Shares Drop 4% as SoftBank Sells 2% Stake in the Company

<p>Following a regulatory problem, SoftBank sold more than 13.7 million shares, or 2.17 percent, in Paytm.Paytm notified the stock market that 12,784,787 Paytm shares, or 2.17 percent of the Paytm Parent company, were sold by SVF India Holdings (Cayman).</p>
<p><img decoding=”async” class=”alignnone wp-image-461716″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-drop-4-as-softbank-sells-2-stake-in-the-company-paytm-paymnents-1-11z.jpg” alt=”theindiaprint.com paytm shares drop 4 as softbank sells 2 stake in the company paytm paymnents 1 11z” width=”1356″ height=”1017″ title=”Paytm Shares Drop 4% as SoftBank Sells 2% Stake in the Company 12″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-drop-4-as-softbank-sells-2-stake-in-the-company-paytm-paymnents-1-11z.jpg 700w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-drop-4-as-softbank-sells-2-stake-in-the-company-paytm-paymnents-1-11z-150×113.jpg 150w” sizes=”(max-width: 1356px) 100vw, 1356px” /></p>
<p>In September 2022, it had a 17.5% share in Paytm; but, via many open market transactions, it reduced its shareholding. Following this transaction, the business’s ownership of One97 Communications, the company that powers Paytm, dropped from 5.01 percent to 2.83 percent.</p>
<p>“During the period of January 23, 2024 to February 26, 2024, SVF India Holdings (Cayman) Limited sold 13,784,787 equity shares of One97 Communication Limited. On February 26, 2024, one of the sales exceeded the 2% threshold mentioned in Regulation 29 (2) of the SEBI Takeover Regulation,” the company stated in a statement, according to Money Control.</p>
<p>Paytm’s stock fell 4% at ₹391.15 today after SoftBank’s announcement that it was selling a stake. Following the Reserve Bank of India’s directive on January 31, the value of the company’s shares had already dropped by 48.5 percent.</p>
<p>SoftBank reduced its ownership position in the firm by 2% in December and January, to barely 5%, and by 2.83 percent after today’s transaction.</p>
<p>In 2023, China’s Alibaba Group and Warren Buffett’s Berkshire Hathaway both left the company, and a division of the Chinese fintech company Ant Financial also reduced its ownership.</p>
<p>According to Business Standard, SoftBank Group lost 10% of the $1.4 billion it had invested in May 2017 at a price of Rs 820 a share.</p>
<p>The non-executive chairman and board member of Paytm Payments Bank, Vijay Shekhar Sharma, the CEO of Paytm, has resigned. A month has passed since Paytm first encountered difficulties due to regulatory issues facing the industry leader in digital payments.</p>
<p>The Reserve Bank of India has banned Paytm from receiving deposits and credits from any consumer after March 15 due to repeated non-compliance and continuing supervisory concerns.</p>
<p>Following the RBI’s decision, Paytm’s stock value saw a considerable decrease due to the regulatory obstacles the company faced. Nonetheless, there are indications of improvement, which are partially attributable to Paytm’s partnerships with other financial institutions and the RBI’s decision to prolong the deadline for closing the payments bank’s activities.</p>
<p>51 percent of Paytm Payments Bank is owned by Mr. Sharma. Paytm is now one of India’s top mobile-only banking services because to his transformation.</p>

Related Articles

- Advertisement -
- Advertisement -
- Advertisement -
error: Content is protected !!