Paytm’s shares jumped 5% after announcing plans to sell its entertainment ticketing business to Zomato.
When trading opened on August 21, Paytm’s stock price on the National Stock Exchange rose 5.3% to Rs. 604.7 per share compared to the previous day’s close. Within minutes, the gains were reduced, and the share price settled at Rs. 586.9.
On the other hand, Zomato shares also hit a high of Rs. 267, which increased around 2.3% over the previous close. However, by 9:24 AM the stock price had moderated to Rs. 262.46, higher by 0.93% versus the last trading session.
Today, Paytm shares are open for trading at Rs. 584.00. It reached a day high of Rs. 604.70. As per 11:46 am IST, share price of Paytm traded at Rs. 575.70 INR.Â
Zomato informed exchanges that it decided to accept Paytm’s proposal. Paytm proposed to sell its ticketing business. Now, Zomation has taken the entertainment ticketing firm by agreeing with One97 Communications Ltd (OCL), Paytm’s parent company.Â
Under this agreement, OCL’s entertainment ticketing operations will be transferred to its wholly-owned subsidiaries such as Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). Thereafter, Zomato will obtain a 100% stake in these subsidiaries. However, these are managed by the TicketNew and Insider platforms. Now, It is fully taken over by Zomato.
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Paytm said in a press release that OCL will divest its entire 100% stake in its subsidiaries OTPL and WEPL to Zomato. Around 280 employees from the ticketing division will also be included in the transfer.
Zomato indicated that the acquisition is anticipated to be finalized within 90 days following the signing of a share purchase agreement. Nevertheless, Paytm specified that ticketing for movies, sports, and events will continue to be accessible on its app for up to 12 months during the transition phase.
Selling its entertainment ticketing Business and Focus on Core Business
Paytm announced that the sale of its entertainment ticketing division underscores its commitment to enhancing payments and financial services distribution. According to sources, the company has enlarged its contribution in insurance, equity broking, and wealth distribution to facilitate cross-selling and strengthen its position as a financial services distributor.
A spokesperson for Paytm remarked, “We developed the entertainment ticketing business in response to market demands at the time. As it moves to Zomato’s ownership, we express our gratitude to every team member who played a role in this journey. This transition enables us to maintain our focus on long-term growth in our core sectors and create value for all stakeholders.”
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