In a move signalling continued concerns, Japan's SoftBank Group has further reduced its stake in Indian fintech company Paytm. According to an exchange filing on Thursday, SoftBank's stake has been cut to 2.83%, down from 5.01% previously. This follows a steady decrease in ownership over the past year, with SoftBank holding 17.5% in September 2022.
This development comes amidst a challenging period for Paytm. The company's share price has fallen significantly, dropping 48.5% since the end of January. This decline in value corresponds to roughly $2.8 billion and is attributed to various factors, including the Reserve Bank of India's order to wind down Paytm's banking operations due to regulatory non-compliance.
The news of SoftBank's reduced stake adds to the uncertainty surrounding Paytm's future. While the company faces challenges, it remains to be seen how it will navigate the current situation and regain investor confidence.
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