The price of fintech share Paytm is continuously falling after the recent action of the Reserve Bank. Even today on Friday, upper circuit has been imposed on Paytm’s shares. Meanwhile, one thing is attracting people’s attention and that is the reduction of stake by Japanese investor Softbank just before the recent crash of Paytm. SoftBank has now explained the reason for this.
Softbank’s finance chief explained the reason
SoftBank had recently sold most of its stake in Paytm. The Reserve Bank took action against Paytm Payments Bank on January 31. Paytm shares were sold by SoftBank just before that. According to a Bloomberg report, SoftBank says that it was anticipating uncertainty in India’s regulatory environment. Besides, he also had doubts about the license of Paytm Payments Bank.
SoftBank’s Finance Chief Navneet Govil told Bloomberg – We felt it would be appropriate to start monetizing. We are happy that we were able to exit by selling a decent portion before the recent crash in Paytm shares.
Paytm stock fell so much after the action
The information about RBI’s action on Paytm on January 31 came out after the market closed. After that, there was a lower circuit of 20-20 percent on Paytm stock for two consecutive days. Now the stock market has reduced the circuit limit to 10 percent, so today the stock has touched the lower circuit of 10 percent for the second day. Since January 31, Paytm shares have fallen by 50 percent.
mcap came to rs 26 thousand crores
On January 31, the day of RBI action, Paytm shares closed at Rs 761.20. In today’s trading at 10:15 am, the share was trading near Rs 415 with a loss of about 7 percent. The stock has fallen to Rs 410 in today’s trading, while recently it has also made a new 52-week low of Rs 395. Due to this decline, the mcap of the company has reduced to Rs 26 thousand crores.
Softbank reduced this much stake
SoftBank is one of the first big investors to invest money in Paytm. SoftBank had made a big investment in Paytm even before its IPO. At the time of the IPO launched in 2021, SoftBank had 18.5 percent stake in Paytm. SoftBank is offloading Paytm shares from November 2022 itself. After the last offloading in January this year, SoftBank’s stake in Paytm has come down to just 5 percent.