Paytm plunges 10% as Softbank unit seeks to cut stake

NEW DELHI: Shares of One 97 Communications Ltd., the parent of India’s leading digital payments brand Paytm, plunged in Mumbai as a unit of Japan’s SoftBank Group Corp. offered to lower its stake in the company.

About 29.5 million shares, equivalent of 4.5% of the Mumbai-listed firm’s equity capital, were traded in a single block on India’s National Stock Exchange, according to data compiled by Bloomberg. The trade pulled down shares of Paytm as much as 10%, their biggest plunge since July 29.

Shares of Paytm have tumbled since its initial public offering last year, forcing some of its key investors to rethink on their ownership, amid global macro uncertainty. Softbank’s SVF India Holdings (Cayman) Ltd. offered 29 million shares of Paytm at 555 rupees ($6.8) to 601.45 rupees each, according to terms of the deal obtained by Bloomberg News on Wednesday.