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Paytm Faces Investor Exodus: Berkshire Hathaway Dumps Entire Stake, Foreign Investors Step In”

Warren Buffett’s Berkshire Hathaway Waves Goodbye to Paytm, Selling Entire Stake for ₹1,370 Crore

In a surprising move, Warren Buffett’s legendary investment firm, Berkshire Hathaway, has bid farewell to its investment in Paytm, the Indian fintech giant. After five years of being in the game, Berkshire Hathaway made waves by selling off its entire 2.5% stake in One 97 Communications Ltd., Paytm’s parent company, for a jaw-dropping ₹1,370 crore.

The sale involved a whopping 1.56 crore shares, which Warren Buffett’s team happily unloaded onto the open market at a price of ₹877.29 per share. That’s quite the move! But here’s where things get interesting: Berkshire Hathaway had originally acquired these shares at an average cost of ₹2,178 crore, as per Paytm’s red herring prospectus when it went public. Ouch, that’s a significant loss on their part!

However, these shares didn’t end up homeless for long. Two foreign investors, Copthall Mauritius Investment Ltd., and Ghisallo Master Fund, took the plunge and swooped in to claim their pieces of the Paytm pie. Copthall Mauritius Investment managed to bag 7.57 lakh shares (that’s 1.19% of the pie), while Ghisallo Master Fund secured 4.27 lakh shares (0.67%). Both investors eagerly snapped up their shares for ₹877.2 per piece.

As expected, this shake-up sent shockwaves through the market. The closing bell saw One 97 Communications’ shares drop by 3.08%, landing at ₹895 per share on the National Stock Exchange (NSE). Meanwhile, the benchmark Nifty 50 experienced a minor decline of 0.04% on the same day. It’s clear that Buffalo’s exit from the Paytm arena has made an impact.

What’s next for Warren Buffett and Berkshire Hathaway? Only time will tell. But for now, Paytm investors and enthusiasts are left wondering what this departure could mean for the future of the fintech major. Will it continue to dominate the Indian financial landscape, or will other players step up to fill the void left behind? Let the speculation games begin!

Sambit Pradhan

Sambit Pradhan

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