Shares of India’s leading digital payment brand Paytm tumbled about 10% as a unit of Japan’s SoftBank Group Corp. decided to lower its stake in the company.
A data by Bloomberg reveals that about 29.5 million shares or 4.5% stake of the company’s equity capital, were traded in a single block deal on the NSE. This pulled down Paytm shares to roughly 10%, their biggest downfall since July 29.
Reports further suggested that SoftBank will sell a third of its stake, $200 million in Paytm via block deal. Shares of Paytm has dropped since its initial public offering last year amid IPO boom.
Along with Alibaba Group Holding Ltd. and its Fintech affiliate Ant Group Co., Japan’s SoftBank is Paytm’s biggest shareholders! After the sale, SoftBank will roughly hold a share of 12.9 percent in the company.