This comes after SoftBank on January 24 announced that it had pared yet another 2% stake in fintech major One 97 Communications, which runs the payments platform Paytm, to bring down its shareholding in the company to about 5%.
The Japanese investor has been gradually reducing stake in Paytm as it reportedly has plans to exit the company completely.
SoftBank sold a majority of its stake in Paytm before regulatory scrutiny caused the fintech firm’s shares to dive, Bloomberg reported earlier this month, citing the Vision Fund’s executive managing partner.
One 97 Communications Ltd, recently saw its founder Vijay Shekhar Sharma stepping down as part-time non-executive chairman and board member at associate entity Paytm Payments Bank Ltd (PPBL). The parent also withdrew all nominees from the payments bank’s board.
The troubled PPBL, on which restrictions were imposed by the central bank due to compliance issues on January 31, has brought new faces to the table.
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PPBL’s reconstituted board now includes former Central Bank of India chairman Srinivasan Sridhar, retired IAS officers Debendranath Sarangi and Rajni Sekhri Sibal, as well as former executive director of Bank of Baroda Ashok Kumar Garg.Shares of One 97 Communications fell 5% to the day’s low of Rs 385.90 on Thursday, witnessing their third successive decline and losses extending to 10%.