Paytm stock price: Paytm stock rises 3% to new 52-week high on sale of PayPay shares for Rs 2,364 crore

Paytm shares rose more than 3% on Monday after the Singapore-based unit approved the sale of Japanese payments company PayPay’s stock acquisition rights (SARs) for a net profit of 41.9 billion yen, ending the 52-week It hit an all-time high of 1,007 rupees. 2,364 billion rupees. This transaction is expected to strengthen the company’s consolidated financial position.

The stock acquisition rights (SARs) acquired by One97 Communications Singapore (Paytm Singapore) in September 2020 will be sold to an entity under SoftBank Vision Fund 2. The transaction values ​​PayPay at 1.6 trillion yen, and Paytm’s stock offers a significant yield after deducting exercise costs.

The transaction is expected to close by December 2024, subject to corporate approvals and other customary conditions. Paytm Singapore’s board of directors approved the sale, citing the significant value generated by SAR as a key factor. Proceeds from this transaction are expected to strengthen Paytm’s cash position.

Paytm reported a consolidated net profit of Rs 928.3 crore in the second quarter of FY25, a reversal from a net loss of Rs 290.5 crore in the year-ago period. However, operating revenue for the September 2024 quarter declined by 34.1% year-on-year to Rs 1,659.5 million.

Paytm is a leader in India’s mobile payments and financial services sector and has been at the forefront of India’s QR payments revolution for the past few years.

Also Read | FII’s November Surprise: A tale of two halves for Indian stocks

(Disclaimer: Recommendations, suggestions, views and opinions by experts are their own. They do not represent the views of Economic Times)