Paytm shares slip over 2% as Softbank divests another 2% stake

Shares of One 97 Communications Ltd, parent company of digital payments platform Paytm, were trading more than 2 per cent lower on Tuesday, July 18, as Softbank further divested its holding in the company, according to a stock market disclosure today.

SVF India Holdings (Cayman), a SoftBank entity, has sold a 2.01 per cent stake in Paytm. Post-divestiture, Softbank holds a 9.15 per cent stake in the company. Earlier in May, the Japanese investment company sold a 2 per cent stake in Paytm.

At 2.43 PM, Paytm shares were trading 2.17 per cent down at Rs 843.85 apiece on the BSE. The stock hit a day's low of Rs 838. The company's shares last closed at Rs 862.55 apiece on Monday, July 17.

This is the first time that Softbank has managed to sell Paytm's stock at a profit since the company got listed in November 2021, according to media reports.

The investment firm has been offloading stakes in Paytm since November 2022 through open market transactions or block deals.

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Paytm's recent development

Last week, Paytm announced the signing of a memorandum of understanding with the Goa government to facilitate digital payments for all its departments. The MoU was signed in the presence of the Chief Minister of Goa, Dr. Pramod Sawant, and Dr. V. Candavelou, Finance Secretary of Goa.

With this, users can make payments for various services, including municipal tax, water, and panchayats, through Paytm UPI, UPI Lite, Paytm Wallet, net banking, debit cards, and credit cards.