Warren Buffett's Berkshire Hathaway sells entire stake in Paytm; books a loss of about Rs 507 crore

Warren Buffett's Berkshire Hathaway has offloaded its entire stake in One97 Communications, Paytm's parent company. In a substantial transaction, Berkshire's unit BH International Holdings sold 1.56 crore shares, representing a 2.46% equity stake. 

The shares were sold at an average price of Rs 877.29, totalling nearly Rs 1,370 crore. This move marks a significant exit for Buffett from the Indian fintech company.

Who bought the shares?

The shares previously held by Berkshire Hathaway were acquired by Ghisallo Master Fund and Copthall Mauritius Investment. Ghisallo Master Fund purchased 42,75,000 shares (0.67%), and Copthall Mauritius Investment bought 75,75,529 shares (1.19%). 

Berkshire's investment in Paytm

Berkshire Hathaway's journey with Paytm began in 2018 when it invested nearly Rs 2,200 crore, marking Buffett's first foray into an Indian company.

However, this investment journey has not been profitable. Including the recent sale, Berkshire Hathaway has incurred a loss of about Rs 507 crore from its Paytm investment.

Paytm's market performance and other investors

Paytm's market performance has been a rollercoaster. On the day of the sale, Paytm's share price settled at Rs 895, down 3.08%. Notably, other major investors like Softbank and Alibaba Group have also reduced their stakes in Paytm. Softbank has been trimming its stake since last year, and Alibaba sold its entire direct stake in February.

Despite the sell-off by major investors, Paytm has shown some positive signs in its financial performance. In the July-September quarter, the company reported a 32% increase in revenue, reaching Rs 2,519 crore.

Moreover, it narrowed its losses to Rs 292 crore, compared to a net loss of Rs 571.5 crore in the same period last year.