Warren Buffett's Berkshire Hathaway exits Paytm; stock drops 1%

Shares of Paytm parent One97 Communications fell over 1% in early trade on the BSE after Warren Buffet-owned Berkshire Hathaway sold its entire stake in the fintech company through block deal on Friday. Buffett had invested around ₹2,200 crore in Paytm in 2018 to pick up a 2.6% stake in the company.

As per the exchange data, Berkshire Hathaway Inc through its affiliate BH International Holdings sold more than 1.56 crore shares or 2.5% stake in the payment solutions company via block deal on Friday, November 24.  The shares were sold at an average price of ₹877.29 per share, taking the transaction value to ₹1,370.63 crore. On Friday, Paytm shares ended 3.2% lower at ₹893 apiece on the BSE.

Extending losses for the second straight session on Tuesday, Paytm shares opened lower at ₹889 and declined as much as 1.4% to hit a low of ₹880 on the BSE. The counter saw a spurt in volume trade as 2.3 lakh shares changed hands over the counter as compared to the two-week average volume of 2.06 lakh stocks. The share price of Paytm declined as much as 4.6% in the last two trading days after rising nearly 4% in the previous four sessions.

At the time of reporting, Paytm share price was quoting at ₹889.45, down 0.4%, with a market capitalisation of ₹56,456 crore. The fintech major touched its 52-week high of ₹998.30 on October 20, 2023, and a 52-week low of ₹444.35 on November 28, 2022.

Paytm shares have given 92% returns in the last one year, while it surged 67% in the calendar year 2023. The counter added 26% in six months, whereas it fell nearly 4% in a month amid profit booking at higher levels.

Earlier this month, Paytm partnered with global travel technology company Amadeus to expand its presence in the travel technology space. Under this collaboration, for the next three years, the company will integrate Amadeus's expansive travel platform, enhancing the travellers’ experience from search to booking, and payments.

“This partnership brings together Paytm's extensive user base and Amadeus's expertise to provide travellers with a more seamless and efficient booking experience,” One97 Communications said in an exchange filing on November 15.

As per the filing, Paytm, one of the leading online travel aggregators in the country, will further solidify its position as the premier travel provider in India with its partnership with Amadeus. “Leveraging Amadeus advanced automation and New Distribution Capability (NDC) technologies will enable Paytm to secure precise results and establish a consistent and robust travel shopping ecosystem.”

“With Artificial Intelligence-powered capabilities, Paytm will deliver hyperpersonalised recommendations and dynamic pricing to offer a world-class experience to its users powered by Amadeus,” it says.

With Amadeus APIs, Paytm users will gain access to a vast inventory of global flight options, making it easier for them to find the best deals and book flights to destinations around the world, all within the Paytm app. This single API will provide the users access to diverse travel content, including Global Distribution Systems (GDS), Low-Cost Carriers (LCC), hotels, and more. This collaboration also paves the way for Paytm to offer a unified PNR solution in partnership with Indian national carriers, as per the release. 

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)