Warren Buffett's Berkshire Hathaway Exits Paytm Selling Entire Stake for $164.7 Million

Warren Buffet-owned Berkshire Hathaway has sold its entire stake in One97 Communications Ltd, the parent company of Payment Tech giant Paytm. Berkshire Hathaway sold its entire stake in the company for about 13.71 billion rupees ($164.70 million) through a bulk deal on Friday.

Berkshire sold its entire 2.46% stake in Paytm, which accounted of more than 15.6 million in numbers and were bought by Ghisallo Master Fund and Copthall Mauritius Investment. Both these entities bought 42,75,000 and 75,75,529 shares, respectively.

Copthall Mauritius Investment is an investment firm in the finance sector and stocks whereas Ghisallo Master Fund operates as an investment firm and registered at Cayman Islands. Earlier in this month, Copthal Mauritius also sold 3.47 lakh shares of Reliance Industries through open market transactions, for about Rs 81 crore.

Back to Berkshire's divestment in Paytm, the transaction concluded at an average price of ₹ 877.2 per share. Berkshire earned nearly Rs 1,371 crore from the deal.

With this, Berkshire Hathaway has exited Paytm incurring an overall loss of about ₹600 crore. Berkshire invested in Paytm in September of 2018, valuing Paytm at $10 billion post that investment. 

Paytm, which was Warren Buffett's only investment in India, had also been recently named as one of the inclusions in the MSCI Global Standards Index.

Besides Paytm, Berkshire also sold its stake in Japanese conglomerate SoftBank Group and China's Alibaba Group.

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