Business Standard

Berkshire, Softbank Paytm bets sour after digital payment firm's stock rout

The plunge in shares amid a global equity selloff has cast a shadow over the prospects for technology firms preparing to go public in the Indian market.


Photo: Bloomberg

Suvashree Ghosh | Bloomberg
The collapse in the shares of Paytm following India’s largest initial public offering is proving an expensive lesson for the firm’s early backers.

Paytm shares have tumbled 58% since the stock listed on Nov. 18. That’s cut the valuation of its parent One 97 Communications Ltd. to $7.8 billion from $20 billion.

SoftBank Group Corp.’s 2017 investment valued the Indian company at about $7 billion, according to people familiar with the matter. Berkshire Hathaway Inc. invested in One 97 when the company was valued at more than $10 billion in 2018, and T. Rowe Price Group Inc. invested at a

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 31 2022 | 6:38 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to