Softbank exits Paytm at loss of around USD 150 mn
New Delhi, Jul 13: Japan's Softbank investment arm Softbank Vision Fund exited from Paytm in the June quarter at a loss of around USD 150 million, sources aware of the development said.
Softbank invested about USD 1.5 billion in One97 Communications -- the owner of Paytm brand -- in tranches in 2017.
"Softbank has exited Paytm at a loss of 10-12 per cent. The total loss is around USD 150 million," one of the sources said.
Softbank held around 18.5 per cent stake in Paytm before the company's initial public offering (IPO) in 2021. It held a 17.3 per cent stake through SVF India Holdings (Cayman) Ltd and 1.2 per cent through SVF Panther (Cayman) Ltd.
SVF Panther sold its entire stake during the IPO for Rs 1,689 crore, about USD 225 million.
"Softbank announced that it will exit Paytm in 24 months from the time of the IPO. The exit was in line with Softbank's plan. However, the company did anticipate loss at that time," another source said.
Softbank had acquired Paytm shares at an average price of about Rs 800 apiece.
Paytm share price was listed at Rs 1,955, lower by 9 per cent, and has not matched its issue price of Rs 2,150 apiece to date.
The share price of Paytm plummeted further after the Reserve Bank of India (RBI) banned its associate firm Paytm Payments Bank Ltd (PPBL) from carrying out transactions. It touched an all-time low of Rs 310 on May 9.
Paytm reported widening of losses to Rs 550 crore in the fourth quarter of 2023-24 following the ban on transactions related to its payments bank.
The company during the reported quarter wrote off Rs 227 crore investment for a 39 per cent stake in PPBL following future uncertainties associated with its business operations, including the uncertainty of any other regulatory development, etc.
For the year ended March 31, 2024, the company's loss narrowed to Rs 1,422.4 crore. Paytm had recorded a loss of Rs 1,776.5 crore in FY23.
Billionaire Warren Buffet's Berkshire Hathaway Inc also exited Paytm around seven months back by selling shares at a lower-than-acquired price.
The company had acquired 2.6 per cent stake in Paytm for Rs 1,279.7 per share at an aggregate value of Rs 2,179 crore, as per an official document.
The shares were disposed of at an average price of Rs 877.29 apiece, taking the transaction value to Rs 1,370.63 crore in November.
Paytm's shares closed at Rs 467.25 apiece on Friday.
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'Godman' Kharat held in 8th sexual exploitation case; court denies police remand, sends him to jail
Nashik (PTI): Police took custody of self-proclaimed godman-cum-astrologer Ashok Kharat in an eighth case related to sexual exploitation of women and produced him before a Nashik district court which sent him to jail till May 12 after rejecting the plea for his police remand on Thursday.
On April 29, the Special Investigation Team (SIT) of the Nashik police in north Maharashtra filed a request application in the court demanding Kharat's custody in the eighth case.
After the court granted them the necessary permission, the SIT took custody of Kharat, who was in jail in connection with the seventh case of sexual exploitation registered against him.
The 'godman', named in a dozen FIRs related to rape and financial fraud, was produced before Chief Judicial Magistrate B N Ichpurani in the eighth case through video conferencing due to security reasons.
The eighth case related to Kharat allegedly sexually exploiting a woman who had approached him in search of solutions to her family problems, according to police.
During the hearing, the prosecution demanded police custody of the accused in the latest case.
However, the defence strongly opposed the demand and argued that the SIT was giving same reasons for police custody every time and there was no strong reason for accepting their plea.
The court accepted the argument put forth by the defence and remanded Kharat to judicial custody till May 12 in the eighth case.
The SIT will produce Kharat in the court on Friday again and seek his police custody in the ninth case. As the self-styled godman has been granted judicial custody in the eighth case, he will be sent to Nashik Road Central Jail and the SIT will take his custody from there.
Meanwhile, Kharat's judicial custody in the fourth case ended on Thursday. On April 18, the accused was remanded to judicial custody till April 30 in the fourth case of sexual exploitation of women.
In a related development, the SIT conducted a search at Kharat's office in the 'Canada Corner' area of Nashik city on Wednesday. A 'panchnama' (record of search and seizure proceedings) was conducted and the office was locked and sealed again.
Kharat, a well-heeled man with political connections, was arrested for the first time on March 18 after a woman alleged he had repeatedly raped her for three years.
He is accused of sexually exploiting several women by claiming to have divine powers and knowledge of black magic, and also committing large-scale financial fraud.
The SIT is conducting a probe into 12 cases of sexual exploitation and financial fraud registered against the astrologer in Nashik and Ahilyanagar districts.
