SoftBank slashes stake in Paytm to under 3%

SoftBank cuts stake in Paytm: Japan's SoftBank Group has further decreased its stake in Paytm, a payments firm, to 2.83 per cent from 5.01 per cent, according to an exchange filing on Thursday. 

The conglomerate, which previously held 17.5 per cent in Paytm in September 2022, has gradually reduced its ownership over the past year through multiple open market deals, with the latest reduction occurring in January. 

While notable investors like Warren Buffett's Berkshire Hathaway and China's Alibaba Group exited the firm in 2023, others, such as a Netherlands-based unit of Chinese fintech firm Ant Financial, also decreased their stakes. 

Paytm shares fell 3.4 per cent in afternoon trade, with the stock witnessing 48.5 per cent decline and losing around Rs 23,400 crore ($2.8 billion) in value since the Reserve Bank of India (RBI) ordered the company to wind down its banking unit on January 31 due to persistent non-compliance with regulations.

(With Reuters Inputs)