Paytm faces market shift after Warren Buffet’s complete exit of investment

One 97 Communications

One 97 Communications, the parent company steering the digital payment giant Paytm, encountered a 1 percent dip in its stock value at the opening bell on November 28, triggered by Warren Buffet’s complete divestment from the company. As the clock struck 9:44 am, the stock lingered at ₹893.25.

On November 25, BH International Holdings, Warren Buffet’s investment arm, strategically exited One 97 Communications, liquidating its entire shareholding through open market transactions. This substantial move involved the sale of 1.56 crore equity shares, equivalent to 2.46 percent of the paid-up equity, at an average price of Rs 877.29 per share, totaling a substantial Rs 1,370.6 crore. The repercussions were evident by the close of November 25, with Paytm’s stock recording a 3 percent downturn, settling at Rs 895.

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In the wake of Buffet’s exit, foreign investors Copthall Mauritius Investment and Ghisallo Master Fund LP swiftly seized the opportunity, acquiring 75.75 lakh and 42.75 lakh shares, respectively, at an average price of Rs 877.2 each. As the market responds to this significant reshuffling, Paytm finds itself navigating a transformed landscape.