Mumbai: Warren Buffett’s Berkshire Hathaway has exited its stake in Paytm’s parent One97 Communications, incurring a loss of around ₹507 crore from its initial investment five years ago.
Subsidiary BH International Holdings sold its entire 2.46% stake in the fintech company for ₹1,371 crore to Ghisallo Master Fund and Copthall Mauritius Investment. Ghisallo picked up 42,75,000 shares, while Copthall bought the rest.
Shares were sold at ₹877.2 each, a 5% discount to Thursday’s closing price. Following the deal, facilitated by global investment bank JP Morgan, Paytm shares fell 3.08% on Friday, ending at ₹895 per on the National Stock Exchange.
BH International initially invested ₹2,179 crore in Paytm at an average price of ₹1,279.7 per share, according to the company’s red herring prospectus. It partially divested its investment in 2021 when Paytm went public, pocketing ₹301.70 crore by selling shares at ₹2,150 each. Put together, the company made a total ₹1,672.7 crore from its investment in Paytm, essentially booking a loss of approx ₹507 crore, Mint analysis shows.
Since the listing, several marquee investors such as SoftBank, Ant Group have diluted their holdings in the company.
Despite a sharp decline in its share price during its stock debut, Paytm has seen its share value rise significantly over the past year, delivering a 104% return compared to the Nifty50’s 8% rise over the same period.
For the September quarter, One97 Communications reported a consolidated loss of ₹291.7 crore, less than the ₹571.5 crore loss in the year-ago period. Consolidated income from operations rose 32% year-over-year to ₹2,518.6 crore during the quarter.
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Updated: 24 Nov 2023, 21:30 IST
(tagsTo Translate)Berkshire Hathaway
