Softbank To Sell All Stake In Paytm As Lock-In Period Ends

29 million Paytm shares will be made available by Softbank for 555 to 601.45 each, which represents a discount of up to 7.72% from the stock’s current market value.

Japanese investor SoftBank plans to sell $215 million worth of shares in the e-wallet and payments startup as the required lock-in period for pre-IPO stockholders in Paytm comes to an end.

29 million Paytm shares will be offered by Softbank for 555-601.45 each, a reduction of up to 7.72 percent from the stock’s current market value. The fintech business received a total of $1.6 billion from Softbank. 

But because Paytm’s share price has dropped by over 70% from its IPO price, SoftBank’s remaining 17.5% ownership in the business is now worth $900 million.

According to sources in the next 10 days, SoftBank, which also owns shares in Policybazaar and Delhivery, will sell its investment as soon as the lock-in period expires.

According to people in the know, SoftBank, which also owns shares in Policybazaar and Delhivery, would sell its investment as soon as the lock-in period expires in the upcoming 10 days. 

Since it had invested a total of $2.2 billion in the three firms and sold shares valued at $560 million during their first public offerings, Softbank would still be sitting on a profit of about $150-160 million from the group of companies.

There will be $14 billion worth of shares in these newly listed tech companies that may be bought and traded on the open market. 

When these companies went public, Indian regulations mandated a one-year lock-in period for pre-IPO investors. 

There is concern that major investors will dump all of these stocks when the lock-in for at least 11 companies expires in the upcoming days.