Berkshire Hathaway exits Paytm with ₹507 cr loss
₹507 crore from its initial investment five years ago. Affiliate BH International Holdings sold its entire 2.46% stake in the fintech firm 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’s shares fell 3.08% on Friday, ending at ₹895 apiece on the National Stock Exchange. BH International had 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 had partially divested its stake in 2021 when Paytm went public, pocketing ₹301.70 crore by selling shares at ₹2,150 each. Put together, the company has made a total of ₹1,672.7 crore from its investment in Paytm, essentially booking a loss of about ₹507 crore, Mint analysis shows. Since the listing, several marquee investors such as SoftBank, Ant Group have been diluting their holdings in the company.
Despite a sharp decline in its share price upon its stock market debut, Paytm has seen its stock value rise significantly over the past year, delivering a 104% return compared to the Nifty50’s 8% rise during 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 revenue from operations rose 32% year-on-year to ₹2,518.6 crore during the quarter.Milestone Alert!
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