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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.

Paytm
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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

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

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