Shares of One97 Communications, the Paytm parent today sunk over four per cent after SoftBank said that it has sold 2.07 per cent of the Paytm parent.

SVF India Holdings (Cayman) Ltd, a SoftBank entity, has sold 13,103,148 shares in a series of transactions between February 10, 2023, and May 8, 2023. The disposals represented around 2.07 percent of the total shareholding. While SoftBank did not provide any financial details, the cumulative size of the deals is understood to be around $ 120 million.

“SVF India Holdings (Cayman) Limited has disposed of an aggregate of 13,103,148 equity shares of One 97 Communications Limited in a series of disposals undertaken between February 10, 2023, to May 8, 2023, with the disposal on May 8, 2023, breaching the 2 per cent threshold specified in Regulation 29(2) of the SEBI Takeover Regulations,” the filing said dated May 10, 2023.

The SEBI rule says that any entity who holds shares or voting rights of five per cent or more in a listed company should disclose every acquisition or disposal of shares of the listed firm, if it represents two per cent or more of the shares or voting rights in the listed company.

Following the transaction, the holding of SoftBank in Paytm is estimated to have come down to 11.17 per cent from 13.24 per cent.

In November 2022, the SoftBank group had sold 4.5 per cent stake in One97 Communications via block deals that were valued at $ 200 million.

The announcement led to shares of the company ending 4.01 per cent or Rs 29.20 lower at Rs 698.70 in the BSE.

Recently, Paytm reported lowering of consolidated losses to Rs 167.5 crore in the fourth quarter ended March 31, 2023 from from Rs 762.5 crore in the same period of the last year. Its consolidated revenue grew 51.5 per cent to Rs 2,334.5 crore in the quarter from Rs 1,540.9 crore in the year-ago period.