Paytm parent firm One97 Communications jumps 8%; what is the trigger?

3 min read | Updated on September 10, 2024, 12:21 IST

SUMMARY

Shares of One97 Communications, the parent firm of fintech firm Paytm, jumped as much as 8% to ₹678.50 apiece in the early trade on Tuesday, September 10.

Last month, the Vijay Shekhar Sharma-led company announced that Zomato will acquire Paytm's entertainment ticketing business

Paytm share price: Shares of One97 Communications, the parent firm of fintech firm Paytm, jumped as much as 8% to ₹678.50 apiece in the early trade on Tuesday, September 10. The exact reason behind the sharp upmove in the stock was not clear; however, the surge could be attributed to the fact that the GST Council did not make any announcements as regards GST on UPI transactions below ₹2,000.

Last month, the Vijay Shekhar Sharma-led company announced that the online food delivery platform Zomato will acquire Paytm's entertainment ticketing business for ₹2,048 crore to strengthen its "going-out" segment in a deal that will help the troubled fintech firm to sharpen its focus on core payments and financial services distribution.

Paytm's entertainment ticketing business covers movies, sports, and events (live performances). The boards of Zomato and One 97 Communications Ltd (OCL) have approved the all-cash deal.

ALSO READ | Laurus Labs, Piramal Pharma jump after the US House passes Biosecure Act; here is why

As part of this agreement, One97 Communications' entertainment ticketing business will transfer business to its 100% subsidiaries Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), followed by the sale of 100% stake in these subsidiaries (which operate the TicketNew and Insider platforms) to Zomato.

Subsequently, Zomato will spin off the new business into a new app called 'District'. READ MORE

Paytm shares took a heavy beating earlier this year after the Reserve Bank of India (RBI) in February barred Paytm Payments Bank (PPBL) from accepting new deposits from March 15 and ruled out any review of its action against the company. PPBL is an associate of One97 Communications Limited.

The action against PPBL followed a comprehensive system audit report and subsequent compliance validation report of external auditors, RBI added.

The stock hit a 52-week low of ₹310 in May 2024. Since then, the stock has more than doubled on the bourses.

ALSO READ | 54th GST Council meet outcome: GST reduced on cancer drugs, namkeen; check top highlights

Last month, Paytm received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd. The company will reapply for a payment aggregator (PA) licence, a regulatory filing said on Wednesday.

Paytm Q1 FY25 Results

One97 Communications' loss widened to ₹840 crore in the quarter ended June 30, 2024. The company had posted a loss of ₹358.4 crore in the same period a year ago, according to a regulatory filing by the company. The consolidated revenue of Paytm declined 33.48% to ₹1,639.1 crore during the reported quarter, from ₹2,464.2 crore logged in the same period a year ago.

About The Author

Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Upstox Securities Pvt. Ltd.: SEBI Registration No. INZ000315837 | NSE TM Code: 13942 | BSE TM Code: 6155 | CDSL Reg No.: IN-DP-761-2024 | CIN: U65100DL2021PTC376860 | Compliance Officer: Mr. Kapil Jaikalyani. Tel No.: (022) 24229920. Email ID: compliance@upstox.com | Registered Address: 809, New Delhi House, Barakhamba Road, Connaught Place, New Delhi - 110001 | RKSV Commodities India Pvt. Ltd.: SEBI Registration No.: INZ000015837 | MCX TM Code: 46510 | CIN: U74900DL2009PTC189166 | Compliance Officer: Mr. Amit Lalan. Tel No.: (022) 24229920. Email ID: compliance@rksv.in | Registered Address: 807, New Delhi House, Barakhamba Road, Connaught Place, New Delhi - 110001. Correspondence Address: 30th Floor, Sunshine Tower, Senapati Bapat Marg, Dadar (West), Mumbai - 400013. | For any complaints, email at complaints@upstox.com and complaints.mcx@upstox.com.

Procedure to file a complaint on SEBI SCORES: Register on the SCORES portal. Mandatory details for filing complaints on SCORES include: Name, PAN, Address, Mobile Number, and E-mail ID. Benefits include effective communication and speedy redressal of grievances. Please ensure you carefully read the Risk Disclosure Document as prescribed by SEBI, along with our Terms of Use and Privacy Policy.

Upstox Securities Private Limited is a wholly owned subsidiary of RKSV Securities India Private Limited and RKSV Commodities India Private Limited is an associate of RKSV Securities India Private Limited.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
*Brokerage will not exceed the SEBI prescribed limit.

Risk disclosures on derivatives -

9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
On an average, loss makers registered net trading loss close to ₹ 50,000
Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Mutual Funds: Top rated funds do not constitute any advice. Research data is powered by Morningstar. Please read the offer documents carefully before investing. Upstox shall not accept any liability arising out of your investments.
These are not Exchange traded products, and the Member is just acting as distributor. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.

Attention Investors: As per NSE circular dated July 6, 2022, BSE circular dated July 6, 2022, MCX circular dated July 11, 2022 investors are cautioned to abstain them from dealing in any schemes of unauthorised collective investments/portfolio management, indicative/ guaranteed/fixed returns / payments etc. Investors are further cautioned to avoid practices like:
a) Sharing i) trading credentials – login id & passwords including OTP’s., ii) trading strategies, iii) position details.
b) Trading in leveraged products /derivatives like Options without proper understanding, which could lead to losses.
c) Writing/ selling options or trading in option strategies based on tips, without basic knowledge & understanding of the product and its risks
d) Dealing in unsolicited tips through like Whatsapp, Telegram, Instagram, YouTube, Facebook, SMS, calls, etc.
e) Trading / Trading in “Options” based on recommendations from unauthorised / unregistered investment advisors and influencers.

Kindly, read the Advisory Guidelines For Investors as prescribed by the Exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client’s assets : Advisory Guidelines For Investors

Kindly, read the advisory as prescribed by the Exchange with reference to their circular dated January 14, 2022 regarding Updation of mandatory KYC fields by March 31, 2022: KYC Updation

Attention Investors: Prevent unauthorised transactions in your Demat account by updating your mobile number with your depository participant. Receive alerts on your registered mobile number for debit and other important transactions in your Demat account directly from CDSL on the same day. Prevent unauthorised transactions in your Trading account by updating your mobile numbers/email addresses with your stock brokers. Receive information on your transactions directly from the Exchange on your mobile/email at the end of the day. Issued in the interest of investors. KYC is a one-time exercise while dealing in securities markets - once KYC is done through a SEBI-registered intermediary (broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. As a business, we don’t give stock tips and have not authorised anyone to trade on behalf of others. If you find anyone claiming to be part of Upstox or RKSV and offering such services, please send us an email at complaints@upstox.com and complaints.mcx@upstox.com.

No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account. Stockbrokers can accept securities as margin from their clients only by way of a pledge in the depository system w.e.f. 1st September 2020.
Update your email ID and mobile number with your stockbroker/depository participant and receive an OTP directly from the depository on your registered email ID and/or mobile number to create a pledge.
Check your securities/mutual funds/bonds in the Consolidated Account Statement (CAS) issued by NSDL/CDSL every month.

Attention Investors: SEBI has established an Online Dispute Resolution Portal (ODR Portal) for resolving disputes in the Indian Securities Market. This circular streamlines the existing dispute resolution mechanism, offering online conciliation and arbitration, benefiting investors and listed companies. https://www.sebi.gov.in/legal/circulars/jul-2023/online-resolution-of-disputes-in-the-indian-securities-market_74794.html ODR portal for Investors - https://smartodr.in/login

Paytm parent firm One97 Communications jumps 8%; what is the trigger?

Paytm Q1 FY25 Results

Market Wrap: SENSEX slips 451 pts, NIFTY50 settles at 23,645; 186 stocks hit 52-week high

Waaree Energies, NTPC Green, Inox Wind: How renewable power stocks performed

Bonus shares alert: Kothari Products announces 1:1 bonus issue for its shareholders; check details

Alkyl Amines, Relaxo Footwears hit a 52-week low; Bajaj Holdings rises nearly 4% to all-time high

Trade setup: Breakout signal on NIFTY?

Trade setup: #NIFTY ends red - What lies ahead?