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3 min read | Updated on December 09, 2024, 12:53 IST
SUMMARY
Paytm shares have rebounded by around 54% in this year so far. The stock has rallied more than 220% from its 52-week low of ₹310 apiece hit on May 9, 2024.
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Paytm shares rally over 3% to hit 52-week high after deal to sell stake in PayPay Corp for ₹2,364 crore
Shares of the financial and payments services provider rallied as much as 3.14% to hit a year high level at ₹1,007 apiece on the NSE in morning deals on December 9.
More than 54 lakh shares of Paytm changed hands on the bourse while the traded value was ₹541.47 crore.
The stock hit a 52-week high of ₹1,007 on BSE as well where more than 3 lakh shares were traded.
Paytm shares have rebounded by around 54% in this year so far. The stock has rallied more than 220% from its 52-week low of ₹310 hit on May 9, 2024.
The Paytm owner last week announced that the Board of Directors of its wholly-owned subsidiary, One97 Communications Singapore Pvt Ltd (Paytm Singapore), has approved sale of stock acquisition rights (SARs) held in Japan-based PayPay Corporation for net proceeds of JPY 41.9 billion (around ₹2,364 crore, or $279 million).
These SARs will be sold to a SoftBank entity, SoftBank Vision Fund 2. Paytm Singapore acquired the SARs in September 2020. Paytm had associated with PayPay for launching QR-code-based cashless payments in the region.
“Proceeds from the sale of SARs to strengthen the consolidated cash reserves of OCL which would be utilized for future initiatives,” Paytm said in a stock exchange filing.
Paytm group will continue to support PayPay with technology and product innovation, it added.
Paytm has been divesting its non-assets and bolstering the capital base to enable its sharper focus on the core payments business.
Paytm in early 2024 sold its entertainment ticketing business to Zomato in a deal worth ₹2,048 crore.
In the last few quarters, Paytm’s focus on resolving regulatory troubles and boosting capital base has also aided the stock's rally.
Paytm, which faced RBI and NPCI action for violation of various norms, has been focussing on improving regulatory compliances.
The stock got a booster in October when NPCI gave a relief by allowing the company to add new UPI users to its platform. Paytm’s compliance with risk management, app branding, and customer data norms led to NPCI approval.
The company’s focus on core business, sale of ticketing business and NPCI approval were welcomed by experts which reflected in gains in the stock recently. Experts have noted Paytm’s stable UPI market share and measures to improve average revenue per user which could drive sustained growth.
Shares of Paytm were trading 0.79% higher at ₹984 apiece on the NSE at 11:32 am.
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