Warren Buffett's Berkshire Hathaway Sells Entire Paytm Stake at $165 Million: Exit from Indian Market

American billionaire Warren Buffett's Berkshire Hathaway divested its entire stake in India's Paytm for approximately 13.71 billion rupees ($164.70 million) in a bulk deal on Friday. BH International Holdings, a subsidiary of Berkshire Hathaway, sold over 15.6 million shares of the digital payments firm at a weighted average price of 877.29 rupees per share, according to exchange data. The buyers of the Paytm shares remain undisclosed, with no comments provided by Paytm or Berkshire Hathaway.

As of September 2023, BH International Holdings held a 2.46% stake in Paytm. Buffett's exit follows similar moves by other investors, including SoftBank Group and Alibaba Group. Paytm CEO Vijay Shekhar Sharma had expressed openness to increasing his stake in September, shortly after purchasing shares from Chinese firm Ant Financial.

The divestment by Berkshire Hathaway comes amid challenging times for Paytm, marked by losses and a declining share price. After a 2021 IPO, the company's shares have witnessed a continuous downward trend, experiencing a 42% drop since November 2021. 

Despite being the largest shareholder, Vijay Shekhar Sharma, the CEO, is facing the challenges posed by the company's financial performance. The share price of Paytm closed at 3.34% lower on Friday.

Warren Buffett, often referred to as the "Big Bull" of the stock market, has accumulated vast wealth through his investment strategies and currently holds the fifth position on the list of the world's richest individuals, boasting a net worth of $120 billion at the age of 93. Buffett's investment philosophy emphasizes not only making profits but also having the resilience to endure losses in the stock market.

Source: Reuters