December 9, 2024
New Delhi, India
Paytm Shares
Shares of One 97 Communications, the parent company of Paytm, climbed over 3% on Monday, December 9, reaching a 52-week high of ₹1,007. The surge followed the announcement of the company’s decision to sell its Stock Acquisition Rights (SARs) in Japan-based PayPay Corporation to SoftBank Vision Fund 2, generating net proceeds of JPY 41.9 billion (approximately ₹2,364 crore).
Key Details of the Stake Sale
- Transaction Value: PayPay Corporation is valued at JPY 1.06 trillion, with Paytm’s SARs yielding JPY 41.9 billion post-exercise costs.
- Proceeds Use: The funds will bolster Paytm’s consolidated cash reserves, enabling further shareholder-focused initiatives.
- Timeline: The transaction is set to conclude by December 2024, subject to corporate approvals and customary conditions.
Paytm Stock Performance
- Market Reaction: Paytm shares rose 3.19%, closing at ₹1,007 on the BSE, with a market capitalization of ₹62,923 crore.
- Historical Context: The stock has gained 53% in 2024, rebounding significantly from its 52-week low of ₹310 in May 2024.
Technical Indicators
- Overbought Territory: The Relative Strength Index (RSI) stands at 72.7.
- Moving Averages: Shares trade above all major averages, including 5-day, 50-day, and 200-day, indicating strong upward momentum.
Statement from Paytm
A Paytm Singapore spokesperson expressed gratitude for the partnership with SoftBank and PayPay, highlighting plans to support PayPay’s future innovations, including new AI-driven features to enhance the mobile payment landscape in Japan.
This strategic move marks a significant step in Paytm’s efforts to strengthen its financial position and drive long-term growth.
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