The shares of One 97 Communications Ltd the parent company of Paytm crashed by more than 8 per cent on Thursday after the opening bell to trade at Rs 549 levels. The shares trembled on the news of a large block deal.
SoftBank which holds 17.45 per cent of Paytm through SVF India Holdings, is now looking to sell a 4.5 per cent stake in the company by offloading 29.50 million shares. The price at which they are selling is Rs 555 to Rs 601.45 apiece. The block deal will bring down their effective holding in Paytm to 13 per cent.
The news came in after the mandatory lock-in period for the investors in Paytm ended on November 16th. A lock-in period is the length of time that a Pre-IPO investor must hold onto their shares before they are allowed to sell them.
One97 Communications is the parent entity of Paytm, which is India’s leading digital ecosystem for consumers as well as merchants. It offers a range of digital payment and financial services including mobile advertising, marketing, and payments for merchants.
Digital financial services company saw an increase in its quarterly results this quarter. In Q2FY23, their consolidated net loss stood at Rs 571 crore as compared to Rs 472.90 crore in the September quarter of the previous year.
Their revenue from operations saw an increase of 76 percent to Rs 1,914 crore in the period up from Rs 1,086 crore Year on Year. It was driven by an increase in merchant subscription revenues, growth in bill payments due to growing MTU, and growth in disbursements of loans.
Written by Anoushka Roy
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