Warren Buffett’s Paytm Exit: 2.46% Stake Sale, Rs 600 Crore Loss, 5-Year, Rs 2,200 Crore Investment

Berkshire Hathaway, the globally renowned investment company led by Warren Buffett, has recently divested its entire stake in ‘One 97 Communications Limited,’ the parent company of Paytm. This strategic move involved the sale of the stake through the open market, amounting to approximately Rs 1,370 crore. However, the transaction resulted in a financial setback for Berkshire Hathaway, incurring a loss of Rs 600 crore.

Warren Buffett had initially invested a substantial amount of Rs 2,200 crore in Paytm five years ago in 2018, securing a 2.46% stake through his company. The recent exit from the investment comes on the heels of significant market developments and follows the sale of 220 crore shares during Paytm’s high-profile initial public offering (IPO) in 2021. This decision reflects the dynamic nature of investment strategies and adjustments within Berkshire Hathaway’s portfolio.

Shares Have Been Acquired by Ghisallo Master Fund and Copthall Mauritius Investments

The shares divested by Berkshire Hathaway have found new ownership through strategic acquisitions by two foreign investors, namely Copthall Mauritius Investments and Ghisallo Master Fund. Copthall Mauritius Investments has acquired 42,75,000 shares of One97 Communications, while Ghisallo Master Fund has secured ownership of 75,75,529 shares. The transaction was executed at an average price of Rs 877.2 per share.

As of the end of September, Berkshire Hathaway held 1,56,23,529 shares of One97 Communications, according to shareholding data. This shift in ownership signifies the fluid nature of the equity market, with dynamic movements in shareholdings reflecting the preferences and strategies of institutional investors.

On the final trading day, Friday, November 24, shares of One97 Communications experienced a decline of 3.08% on the National Stock Exchange (NSE). The trading session concluded with the shares of One97 Communications being quoted at Rs. 28.40, marking a 3.08% decrease from the opening value and closing at Rs. 895. This downward movement in share value reflects the market dynamics and factors influencing the performance of One97 Communications on that particular trading day. Investors and market participants keenly observe such fluctuations for insights into the prevailing market conditions and the financial health of the respective company.

Alibaba Group Sold Its Stake as Well

In addition to Berkshire Hathaway’s divestment, it is noteworthy that prior to Berkshire’s exit, other prominent entities such as the Japanese conglomerate SoftBank Group and China’s Alibaba Group have also opted to sell their stakes in One97 Communications. This series of stake sales by major investors suggests a shift in the ownership structure and investment strategies related to One97 Communications. Such actions by notable players in the market often attract attention and may be indicative of evolving dynamics within the company or broader market trends. Investors and industry observers closely monitor these developments for insights into the strategic movements and decision-making of key stakeholders in the business landscape.