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  1. Paytm parent One 97 Communications' shares jump over 5% after block deal; check details 

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Paytm parent One 97 Communications' shares jump over 5% after block deal; check details 

Upstox

2 min read | Updated on September 26, 2024, 14:52 IST

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SUMMARY

Earlier in September, founder and CEO Vijay Shekhar Sharma said that Paytm will focus on achieving profit after tax instead of centring on operational profit before employees stock options. Paytm had earlier committed to achieving positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) before ESOP cost.

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In August, Paytm received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd.

In August, Paytm received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd.

Paytm block deal, Paytm share price: Shares of One 97 Communications, the parent firm of Paytm, surged as much as 5.5% to ₹724.85 apiece on the BSE on Thursday, September 26, after news reports suggested that around 0.8% stake in the company changed hands for ₹327.8 crore in the block deal window. 
As many as 47.2 lakh Paytm shares were sold at an average price of ₹701 per share, according to a CNBC-TV18 report. 

Earlier in September, founder and CEO Vijay Shekhar Sharma said that Paytm will focus on achieving profit after tax instead of centring on operational profit before employees stock options. 

Paytm had earlier committed to achieving positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) before ESOP cost.

"I also want to recommit and restate that my board member suggested to me that, instead of talking about EBITDA before ESOP as a benchmark number, you should talk about PAT.

"Now you will see that we are not just focused on EBITDA before ESOP--a little bit of a good indication, but not the perfect indication of a company. We want to be mature to deliver PAT profitability, and that is our commitment," Sharma said while speaking at the AGM of Paytm-owner One97 Communications Ltd.

Paytm Chief Financial Officer, Madhur Deora, said in the last couple of years, Paytm has spent a huge amount of time with local law enforcement agencies like police, local cyber cell, enforcement directorate, serious fraud investigation office, etc. SFIO for conducting workshops to help investigative agencies know the challenges that they might face and types of crimes that they might need to combat in the new world of digital payments.

In August, the company received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd. The company recently said that it will reapply for a payment aggregator (PA) licence.

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