Buffett Exits Paytm, Sells Complete 2.46% Stake, Incurs Loss

Berkshire Hathaway, led by Warren Buffett, has exited its stake in One 97 Communications (Paytm) based on recent data from the National Stock Exchange. Ghisallo Master Fund and Copthall Mauritius Investment purchased Berkshire's entire stake, acquiring 42,75,000 and 75,75,529 shares, respectively, at an average price of Rs 877.2 per share. This transaction resulted in Berkshire accruing nearly Rs 1,371 crore from the sale.

Earlier in the day, Paytm shares saw a decline of 3.23%, dropping to Rs 893. As of September-end, Berkshire held a 2.46% stake in Paytm through BH International, comprising 1,56,23,529 shares. BH International's initial acquisition cost, as outlined in the IPO prospectus, stood at Rs 1,279.7 per share, with an initial investment of Rs 2,179 crore in September 2018.

During the IPO, BH International initially sold shares worth Rs 301.70 crore at Rs 2,150 per share. Including the recent transaction of Rs 1,371 crore, it netted a total of Rs 1,672.7 crore from its Paytm investment. However, this implies a loss of about Rs 507 crore considering the investment's original value.

Notably, preceding Berkshire's exit, pre-IPO investors like SoftBank have steadily divested their holdings in Paytm, aligning with the stock's recent recovery trend.