Paytm Shares Surge 2% Following Sale of Entertainment Ticketing Division to Zomato

On the BSE, the scrip traded 2.09% up at Rs 585.05 per share. On the NSE, the stock was trading at Rs 584.50 per share, up by 1.82%. It touched a high of Rs 604.70 during the day, up by over 5%, on the NSE; on BSE, it touched Rs 604.45.

Shares of One97 Communications, the parent company of Paytm, rose modestly by more than 2% in early trading Thursday after the decision to offload entertainment ticketing to Zomato for Rs 2,048 crore.

On the BSE, the scrip traded 2.09% up at Rs 585.05 per share. On the NSE, the stock was trading at Rs 584.50 per share, up by 1.82%. It touched a high of Rs 604.70 during the day, up by over 5%, on the NSE; on BSE, it touched Rs 604.45.

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In contrast, the stocks of Zomato remained unmoved at Rs 260.30 on the BSE and Rs 260 on the NSE.

Meanwhile, during the same period, the 30-share BSE Sensex surged 166.24 points, or 0.21%, to 81,071.54, and the NSE Nifty was up by 46.25 points to quote at 24,816.45.

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One97 Communications on Wednesday announced it will hive off its entertainment ticketing business comprising movie, sports, and events ticketing into Zomato for Rs 2,048 crore. The business will continue to run on the Paytm app for 12 months post-transition.

"One 97 Communications Ltd (OCL).Today announced, that it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Ltd," the company stated.

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The deal is pegged at Rs 2,048 crore and is a testimony to the immense value Paytm has injected into its entertainment ticketing business, by creating a seamless, easy and abundant lifestyle to its millions of Indian users. In a statement on the deal Paytm said, "We want to focus on building our payments and financial services business which has been our expertise since day one. The company is upbeat about offsetting the revenue loss from the entertainment ticketing business by enhancing their primary areas of payments and financial services.".

"This will allow us to continue focusing on long-term growth in our core areas and value creation for all stakeholders," said a Paytm spokesperson.

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Deepender Goyal, founder and CEO of Zomato, said, "The proposed acquisition helps us add more scale and offers newer use cases (like movie and sports ticketing) to our customers in this segment."

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