Athira Sethu
Kochi, 9 December 2024
Paytm’s stock price went up by more than 3% on December 9 (Monday) to reach a new 52-week high of Rs 1,007 a share. This comes as the company’s board cleared the sale of its stake in Japan’s PayPay for Rs 2,364 crore.
By the end of the trading session, Paytm’s shares closed at Rs 969.70. Over the last five days, Paytm’s stock has moved steadily up by 7.38%.
In an exchange filing, Paytm’s parent firm- One97 Communications has said that its Singapore-based subsidiary had agreed to sell all of its Stock Acquisition Rights in PayPay, Japan’s popular payment platform, to SoftBank Vision Fund 2, for Rs 2,364 crore.
Paytm Singapore had received these Stock Acquisition Rights that could be exercised to acquire a 7.2% equity stake in PayPay, or 159,012 shares on a diluted basis. The filing from Paytm verifies that the deal values PayPay at about Rs 32,000 crore.
It is expected that this deal will close by December 2024. This would be a huge financial deal for Paytm. It wants to get out of PayPay as the company will try to increase its business operation.
The news of the sale has boosted investor confidence, hence the increase in Paytm’s share price. As the deal progresses, investors will be watching how this move impacts the long-term growth and profitability of the company.
