After SoftBank Stake Sale, Paytm Shares Drop Over 10%: 10 Points


Analysts, however, expect the stock to attract buying interest soon.

New Delhi:
Shares of Paytm’s parent form One97 Communications tanked over 10 per cent in the stock market today.

Here Are 10 Facts About The Fundamentals Of The Stock:

  1. Early investor Softbank offloading a 4.5 per cent stake in the company triggered today’s heavy sell-off. Softbank sold a part of the stake at Rs 555 to Rs 601 range which at the lower end was at a discount to its closing price on Tuesday.

  2. Most new-age tech stocks have been at the receiving end of investor fury. Paytm is among the worst hit in this lot.

  3. Analysts have attributed the opaque revenue model of these companies and their high valuations as the prime reasons for investor fury.

  4. Expiry of the lock-in period for pre-IPO investors is another reason for Paytm coming under intense selling pressure; As much as 85.76 per cent of the outstanding shares are now free to trade.

  5. When Paytm came up with an Rs 18,300-crore initial public offer (IPO) in November last year, it was billed as India’s biggest issue.

  6. Promoter stake in Paytm is nil. The public holds a 100 per cent stake in the company. Paytm has lost 58.8 per cent in the year-to-date period. The BSE benchmark index, Sensex, in the same period has gained 4.55 per cent.

  7. Antfin (Netherlands) Holding BV; SVF India Holdings (Cayman) Limited; SAIF III Mauritius Company Limited; Alibaba.Com Singapore E-Commerce Private Limited; SAIF Partners India IV Limited; BH International Holdings, are foreign investors in Paytm, according to shareholding pattern available on BSE; Canada Pension Plan Investment Board is the foreign portfolio investor (FPI).

  8. Antfin (Netherlands) Holding BV is the single largest shareholder with a 24.88 per cent stake; China’s Alibaba Group holds 6.26 per cent; Antin is the fintech affiliate of Alibaba Group.

  9. Masayoshi Son-led SoftBank has invested in SVF India Holdings held 17.45 per cent before selling 4.5 per cent on Wednesday.

  10. Paytm’s consolidated loss has widened to Rs 593.9 crore in the July-September period of this financial year; revenue from operations increased by about 76 per cent to Rs 1,914 crore.

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