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Japan's SoftBank cuts stake in India's Paytm to under 3%

Published 02/29/2024, 01:54 AM
Updated 02/29/2024, 02:41 AM
© Reuters. FILE PHOTO: Paytm app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo
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BENGALURU (Reuters) -Japan's SoftBank (TYO:9984) Group has further reduced its stake in beleaguered Indian payments firm Paytm to 2.83% from 5.01%, an exchange filing showed on Thursday.

The conglomerate, which held 17.5% stake in Paytm in September 2022, has trimmed its ownership for more than a year through multiple open market deals, with its most recent cut being in January.

While some global investors like Warren Buffett's Berkshire Hathaway (NYSE:BRKa) and China's Alibaba (NYSE:BABA) Group exited the firm in 2023, others, including a Netherlands-based unit of Chinese fintech firm Ant Financial cut their stake.

Shares of Paytm were down 3.4% in afternoon trade.

© Reuters. FILE PHOTO: Paytm app is seen on a smartphone in this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

The stock has fallen 48.5% and lost around 234 billion rupees ($2.8 billion) in value since the Reserve Bank of India on Jan. 31 ordered the company to wind down its banking arm citing persistent non-compliance with regulations.

($1 = 82.9220 Indian rupees)

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