Paytm’s Singapore arm approves stake sale in Japan’s PayPay | Stock Market News
Paytm’s parent company, One97 Communications, on Friday, December 6, 2024, approved the sale of its stake in Japan’s credit card company PayPay Corporation. One97 Communications Singapore, a wholly-owned subsidiary of Paytm’s Singapore arm, ‘Paytm Singapore’, approved the sale of its stake to the Japanese digital payments company.
“We wish to clarify that we have been informed by One97 Communications Singapore Private Limited, a wholly-owned subsidiary of the company (‘Paytm Singapore’) that its Board of Directors at its meeting held today i.e., December 6, 2024, approved the sale of Stock Acquisition Rights (SARs) in PayPay Corporation, Japan,” Paytm said in a regulatory filing to the stock exchanges.
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According to the fintech major, the transaction is subject to the satisfactory completion of all corporate approvals, execution of transaction documents and customary closing conditions. We shall submit the necessary disclosure as per the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, within the stipulated time,” said Paytm.
Paym said that this transaction will increase the company’s consolidated cash balance to the extent of the sale consideration to be received by Paytm Singapore. The statement was a response to a media report which stated that One97 Communications was close to finalising a $250 million (approximately ₹2,000 crore) deal to sell its stake in PayPay to SoftBank Group.
On Friday, shares of Paytm rose over three per cent to hit a fresh 52-week high of ₹990.90 on the BSE before settling 2.02 per cent higher at ₹975.80 apiece on the BSE. The new-age tech stock has risen nearly eight per cent this week and around 24 per cent in the last month.
Paytm Q2 Results
Paytm parent One 97 Communications reported a profit after tax (PAT) of ₹930 crore for the September quarter, benefitting from a one-time exceptional gain of ₹1,345 crore from the sale of its entertainment ticketing business,
The company said it achieved 11 per cent quarter-on-quarter (QoQ) revenue growth due to a 5 per cent QoQ increase in GMV, better realisation from devices and a 34 per cent QoQ increase in revenues from financial services.
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“Our net payment margin increased 21 per cent QoQ to ₹465 crore, largely due to improvement in payment processing margin, better device realisation and growth in GMV (gross merchandise value). Financial Services revenue was ₹376 crore, up 34 per cent QoQ, on account of increased collection bonus in merchant loans due to better asset quality trends, and higher share of merchant loans,” Paytm said in an exchange filing.
