One97 Communications share price, which is the parent company of fintech platform Paytm, witnessed a 3 per cent downfall during Tuesday’s trading session. This decline occurred amid ongoing discussions with food delivery giant Zomato regarding the potential sale of its movie ticketing business.
During intraday trading on the NSE, Paytm shares fell to a low of ₹411 apiece, marking a 3.31 per cent decline from the previous closing price. The stock partially recovered as the session progressed. By 2:58 pm, the shares were valued at ₹417.3, still down 1.82 per cent from the previous close.
In a regulatory filing on June 17, Paytm confirmed to the stock exchanges that it is in “preliminary” discussions with Zomato regarding the transfer of its entertainment business.
“The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s entertainment business, a component of our marketing services, is one opportunity under consideration. As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses,” the company said in a regulatory filing.
Meanwhile, Zomato updated the exchanges, indicating that the company is in discussions with Paytm about the potential acquisition of Paytm’s movie ticketing business, on June 16.
“We have noticed that there are certain news articles circulating in the mainstream media with the subject ‘Zomato in talks to acquire Paytm’s movies, ticketing business’. This voluntary disclosure is being made to clarify our stance on the matter given that any transaction that is considered potentially meaningful may create uncertainty in the market. We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law,” Zomato said.
Also read: GRM Overseas share price jumps 10% after announcement of fundraise
This development follows a turbulent period for Paytm, which faced regulatory action from the Reserve Bank of India (RBI) due to violations by its banking arm. Since March, Paytm Payments Bank Ltd has been prohibited from accepting deposits or top-ups.
As a result of the RBI’s action, One 97 Communications’ stock has suffered, declining by 35.4% so far in 2024.
3.6 Crore Indians visited in a single day choosing us as India’s undisputed platform for General Election Results. Explore the latest updates here!
Download The Mint News App to get Daily Market Updates.
Published: 18 Jun 2024, 04:29 PM IST
