Paytm shares tank 10 pc in morning trade

MUMBAI: Shares of One97 Communications, Paytm's parent firm, on Thursday tumbled 10 per cent in morning trade following reports that Japan-based Softbank has started the process to sell a 4.5 per cent stake in the company in a block deal.

After a weak beginning, the stock further tanked 10 per cent to Rs 541.30 on the BSE.

At the NSE, it fell 9.98 per cent to Rs 541.40.

Softbank has started the process to sell a 4.5 per cent stake in One97 Communications for about USD 200 million (around Rs 1,627 crore) in a block deal, according to sources.

The development comes immediately after the lock-in period for Paytm's investors to trade shares ended.

Softbank is the second largest shareholder with a 17.5 per cent stake in the company.

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.

Softbank expects to raise around USD 200 million at the lower end of the price band of Rs 555.

The deal may fetch Softbank around USD 215 million at the upper end. Softbank had invested USD 1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth USD 220 million at the time of IPO.