Paytm Records 5% Increase in Share Prices After Zomato Deal Announcement Paytm saw its share prices increase by 5 per cent on August 21, just a day later it announced the decision to sell its entertainment ticketing arm to Zomato.
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Paytm saw its share prices increase by 5 per cent on August 21, just a day later it announced the decision to sell its entertainment ticketing arm to Zomato.
Paytm's shares were trading at INR 604.7 each on the NSE, which is an increase of 5.3 per cent from its previous closing price. Online investment platform Upstox reported that within a few minutes, the shares were valued at INR 586.9 each, still up by 2.24 per cent
Zomato on the other hand clocked a high of INR 267 per share shortly after the day opened on NSE and recorded a gain of 2.3 per cent compared to the previous closing price.
Paytm and Zomato's deal is reportedly worth INR 2048 crore and the food delivery platform Zomato is said to have informed the bourses that it will enter into a formal agreement with Paytm's parent entity One97 Communications Ltd (OCL).
The transaction will also include Zomato's acquisition of Wasteland Entertainment Pvt Ltd (WEPL) and Orbgen Technologies Pvt (OTPL, both of which are fully owned subsidiaries of Paytm.
Paytm's press release revealed that OCL will sell its complete stake in subsidiaries OTPL and WEPL and operate TicketNew and Insider to Zomato. The deal will also see close to 280 Paytm employees from the entertainment-ticketing arm.
The acquisition is reported to be completed within 90 days from the signing of the sale purchase and sale agreement, however according to Uptsox, Paytm has clarified the accessibility to the ticketing platform will continue to be available on its app during a transition phase that might extend up to a whole year.
