Shares of Paytm crashed nearly 10 per cent on November 17, as Japan-based Softbank sold over 4 per cent stake in Noida-based digital payments and financial services company via a block deal.
Softbank's decision to sell a 4.5 per cent stake in One97 Communications for about र्1,627 crore comes close on the heels of the end of IPO lock-in period. Softbank is the second largest shareholder with a 17.5 per cent stake in the company. After today's stake sale, Softbank's stake would be reduced to 13 per cent.
According to two sources aware of the development, Softbank has offered to sell shares in the price band of Rs 555 to Rs 601.55 apiece that are held through its subsidiary SVF India Holdings.
Paytm and founder Vijay Shekhar Sharma pulled off India’s largest-ever IPO last November only to see its shares plummet in one of the worst debuts ever.
Nevertheless, the Goldman Sachs' analysts recommended buying Paytm shares given the company’s progress in boosting revenue and moving toward profitability.