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Shares of One 97 Communications, the parent company of fintech firm Paytm, surged over 3% to a new 52-week high; Key points for investors
Paytm Share Price
Paytm Share Price Hits 52-Week High: Shares of One 97 Communications, the parent company of fintech firm Paytm, surged over 3% to a new 52-week high of Rs 1,007 on Monday, December 9. The rise followed the announcement that the company would sell its stake in PayPay Corporation to SoftBank.
Paytm’s stock has now gained for five consecutive sessions, rising around 11%. It is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
The uptick in Paytm shares came after its Singapore-based subsidiary approved the sale of its Stock Acquisition Rights in Japan’s PayPay to SoftBank Vision Fund 2 for Rs 2,364 crore.
The deal stems from an agreement signed between Paytm, Paytm Singapore, and Japanese digital wallet firm PayPay, as well as SoftBank Corp, SoftBank Group Corp, and Yahoo Japan Corporation. Under the agreement, Paytm Singapore acquired Stock Acquisition Rights that could be converted into 1,59,012 shares, equating to a 7.2% stake in PayPay on a fully diluted basis.
The transaction is expected to close by December 2024, pending corporate approvals and other customary conditions. Paytm Singapore’s board approved the sale, citing the significant value generated by the Stock Acquisition Rights. The proceeds from the deal are anticipated to strengthen Paytm’s cash reserves.
In Q2 FY25, Paytm reported a consolidated net profit of Rs 928.30 crore, a sharp recovery from the net loss of Rs 290.50 crore reported in the same quarter the previous year. However, its revenue from operations fell by 34.1% year-on-year to Rs 1,659.50 crore for the September 2024 quarter.
As a leader in India’s mobile payments and financial services sector, Paytm has been at the forefront of the country’s QR payment revolution in recent years.
Analysts’ View
In late November, global brokerage UBS raised its target price for Paytm to Rs 1,000 from Rs 490 per share while maintaining a ‘neutral’ stance on the stock. Similarly, Bernstein increased its target price for Paytm to Rs 1,000 from Rs 750.
UBS noted that the next phase of Paytm’s growth would need to be driven by revenue, as most cost optimization initiatives have already been fully implemented.
As of 10:25 am, Paytm’s share price stood at Rs 984.75, up 0.92% on the BSE.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
