SoftBank is looking to sell $215 million worth of shares in Paytm as the fintech's lock-in for pre-IPO investors ends later this week.
The Japanese investor is offering to sell 29 million shares in the company at Rs 601.45 apiece, at a discount of 7 per cent to the current market price, according to a Moneycontrol report.
SoftBank had made a total investment of $1.6 billion in Paytm and taken out around $220-250 million in the company’s IPO last November, the report said.
On Tuesday, 86 per cent of Paytm's shares became free to trade after the end of the lock-in period, allowing investors to sell shares that haven't yet been allowed onto the market.
SoftBank's Masayoshi Son is reportedly not in a hurry to exit from its investments like Paytm, PB Fintech and Delhivery so as to avoid triggering panic selling.
Alibaba Group Holding Ltd and its fintech affiliate Ant Group Co are the biggest shareholders in One97 Communications Ltd, Paytm's parent company. Alibaba.Com Singapore E-Commerce Private Limited holds 6.26 per cent of One97 while Antfin (Netherlands) Holdings B.V. has another 24.88 per cent.
SoftBank owns 17.45 per cent through SVF India Holdings (Cayman) Limited while Berkshire Hathaway Inc's BH International Holdings holds 2.41 per cent.
One97 Communications last week reported widening of its consolidated loss to Rs 593.9 crore in the September quarter against Rs 481 crore loss a year ago.
Paytm's consolidated revenue from operations increased by about 76 per cent to Rs 1,914 crore during the reported quarter from Rs 1,086.4 crore in the September 2021 quarter.
Meanwhile, Paytm founder and CEO Vijay Shekhar Sharma said the company is on the right path to profitability with payments service becoming monetisable.
He said the government incentives for UPI payments and merchants' adoption of Paytm devices and subscription products are making payments increasingly monetisable and profitable.