Shares of Paytm's parent company One97 Communications saw a major decline on Thursday.
Shares of Paytm fell 10 per cent in Thursday morning trade.
Paytm shares fell 10 per cent to Rs 541.30 on the BSE after a weak opening.
Paytm shares were trading down 9.98 per cent at Rs 541.40 on the NSE.
Paytm shares took a beating after SoftBank started the process of selling
its 4.5 per cent stake in One97 Communications for about $200 million (about Rs 1,627 crore).
SoftBank made the decision soon after the lock-in period for trading the shares was over.
Big loss to shareholders
Let us tell you that SoftBank is the second largest shareholder in Paytm with 17.5 per cent stake.
Big loss to shareholders
SoftBank expects to raise around $200 million at the lower end of the price band of Rs 555.
Why is SoftBank selling its stake
SoftBank is likely to get around USD 215 million after this deal. SoftBank had invested $1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth $220 million at the time of the IPO.