Stock in One97 Communications (NSE: PAYTM), the parent company of fintech company Paytm has risen by 3 % to reach the highest level in 52 weeks at 1.007 rupees on Monday.
The reason behind this surge is the announcement of selling sa take in PayPay Corp to SoftBank. The stock has increased 215 % since its 52-week high of Rs. 310 in May of this year.
Paytm stated that its board of directors wholly owned subsidiary One97 Communications Singapore Private Limited in a meeting.
That was held on December 6, 2017, approved the sale of all of its SARs (stock acquisition rights) from the Japanese PayPay Corporation to SoftBank Vision Fund 2 Entity for net revenues in the amount of 41.9 billion yen, or Rs 2,364 crore.
The company announced in exchange filing PayPay will be valued at JPY 1.06 trillion with this transaction.
The value of PayPay SAR held by Paytm Singapore is net proceeds of JPY 41.9 billion (after netting the exercise cost of the SAR). The transaction is expected to close in December 2024.
Secret Behind The Deal?
The rationale of the deal the company announced was confirmed that Paytm Singapore has approved the sale of SAR.
The company claimed that the net profits made from selling the SAR will help to increase the cash reserves that are held by One97 Communications Limited and help to pursue business plans that are focused on maximizing value to investors.
Boom For The 4th Time Consecutive Day
Paytm’s share price increased for the fourth time in a row on Monday and climbed over 9.5 % over this time. With today’s rally, the stock crossed the Rs 1,000 mark and also scaled its new 52-week high.
Quick Fact
| Company name | One97 Communications |
|---|---|
| Sale Announcement | Selling stake in PayPay Corp to SoftBank |
| Stake Sale Proceeds | ₹2,364 crore |
| Transaction Date | December 2024 |
| PayPay Valuation | JPY 1.06 trillion |
| Net Profit Use | Strengthen cash reserves and future business initiatives |
| Share Price Change | +3% to ₹1,007 |
| 52-Week High | ₹1,007 |
| 52-Week Low | ₹310 |
| Stock Increase | 225% from 52-week low |
| Recent Stock Climb | 9.5% over four days |
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