SoftBank’s Paytm Stake Plunges to 2.83% Amid Regulatory Concerns

SoftBank has significantly reduced its stake in Paytm, selling shares worth Rs 580 crore, marking its fifth instance of divestment in the ongoing fiscal year. The VC’s stake has dwindled to nearly 3%, a sharp decline from its previous holding of 13.24%. The disposal of 1,37,84,787 equity shares breached SEBI’s takeover regulations threshold of 2%. As per regulatory filings, SoftBank’s shareholding contracted from 5.01% to 2.83% during this disinvestment. 

This year alone, SoftBank has offloaded shares worth Rs 3,800 crores, totaling Rs 4,380 crore for the fiscal year. “SoftBank has been on a stake-selling spree in companies that filed IPOs in the past two to three years,” reflecting its strategy amidst financial challenges. 

Regarding regulatory concerns impacting Paytm, the Reserve Bank of India (RBI) imposed business restrictions on Paytm Payments Bank earlier this year. These restrictions, due to non-compliance, are set to affect various business verticals.

Vijay Shekhar Sharma stepped down as part-time non-executive chairman amidst these challenges. The company reconstituted its board with notable appointments, including former Central Bank of India chairman Srinivasan Sridhar and retired IAS officer Debendranath Sarangi. “PPBL has informed us that they will commence the process of appointing a new chairman,” Paytm-parent One97 disclosed.