Warren Buffett's Berkshire Hathaway exits Paytm with Rs. 800cr loss
Renowned investor Warren Buffett's Berkshire Hathaway has sold its entire stake in Paytm's parent company One97 Communications Ltd. The investment conglomerate sold 1.56 crore shares, or 2.5% equity, valued at nearly Rs. 1,370 crore at a share price of Rs. 877.29. The sale was executed in a large block deal, resulting in a loss exceeding Rs. 800 crore for the company.
Berkshire Hathaway initially invested at Rs. 1,279.7 per share
In September 2018, Berkshire Hathaway invested $300 million (Rs. 2,179 crore) for a 2.6% stake, or 17.02 million shares, in One97 Communications. The average cost of acquisition was Rs. 1,279.7 apiece, as per IPO prospectus. The investment valued the Vijay Shekhar Sharma-led fintech company at $10-12 billion. The deal, made through BH International Holdings, was Buffett's first-ever investment in India.
Stake sales by pre-IPO investors amid stock's recovery
Before Berkshire Hathaway, other major pre-IPO investors in Paytm have been selling their stakes as the company's stock started to recover. SoftBank, among these investors, has consistently been selling its stake in smaller portions through open market transactions over the past few months. Paytm's stock on Friday ended 3.34% lower on the NSE at Rs. 892.55 apiece.
