Softbank to sell Paytm shares worth $200 million via block deal tomorrow: Reports

Japanese conglomerate SoftBank Group is looking to sell shares of Paytm parent One97 Communications worth $200 million through a block deal on Thursday, according to media reports.

BofA Securities is the banker for the deal, and the price range for the sale has been set at Rs 555-601. The lower end of the price band is a 7.7% discount to Wednesday’s close price of Rs 601.45 on the National Stock Exchange.

As of September 30, SoftBank held a 17.45% stake in the fintech firm through SVF India Holdings (Cayman) post the sale on Thursday -- its stake is likely to fall to 12.9%, reports said.

SoftBank had invested $1.6 billion in Paytm and had sold a partial stake worth $220-250 million in the initial public offering last year.

SoftBank’s investment in the fintech major is under losses, as the stock has corrected more than 72% from its issue price of Rs 2,150.

Softbank is likely selling its stake as the one-year lock-in for existing investors ends.