Paytm shares tank nearly 11%

Softbank has started the process to sell a 4.5% stake in One97 Communications for about $200 million

The stock tanked 10.31 per cent to settle at Rs 539.55 on the BSE. During the day, it went lower by 11 per cent to Rs 535.20.

At the NSE, it fell 10.78 per cent to settle at Rs 536.60.

The company's market valuation eroded by Rs 4,021.85 crore to Rs 35,013.52 crore on the BSE.

On traded volume terms, 43.24 lakh shares were traded at the BSE and over 5.72 crore shares at the NSE during the day.

SoftBank has started the process to sell a 4.5 per cent stake in One97 Communications for about $200 million (around Rs 1,627 crore) in a block deal, according to sources.

The development comes immediately after the lock-in period for Paytm's investors to trade shares ended.

SoftBank is the second largest shareholder with a 17.5 per cent stake in the company.

According to two sources aware of the development, SoftBank has offered to sell shares in the price band of Rs 555 to Rs 601.55 apiece that are held through its subsidiary SVF India Holdings.

SoftBank expects to raise around $200 million at the lower end of the price band of Rs 555.

The deal may fetch SoftBank around $215 million at the upper end. SoftBank had invested $ 1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth $ 220 million at the time of the launch of IPO (Initial Public Offering).