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Shares of Paytm owner One97 Communications rose a little over 2% in morning trade on Thursday (August 22, 2024) after the fintech company said it will sell its entertainment ticketing business to Zomato. | Photo credit: Reuters
Shares of Paytm owner One97 Communications rose a little over 2% in morning trade on Thursday (August 22, 2024) after the fintech company said it would sell its stake. Entertainment ticketing business handed over to Zomato For ₹2,048 crores.
The company’s stock is trading at Rs 585.05 on BSE, up 2.09%.
It rose 1.82% to ₹584.50 per share on the NSE. In intraday trade, shares of the Noida-based fintech company rose over 5% to ₹604.70 and ₹604.45 per share on the NSE and BSE, respectively.
Meanwhile, Zomato shares are trading almost stable at ₹ 260.30 and ₹ 260 per share on the stock exchange.
The 30-share BSE Sensex rose 166.24 points, or 0.21%, to 81,071.54 in morning trade, while the NSE Nifty rose 46.25 points to 24,816.45.
One97 Communications on Wednesday (August 21, 2024) said it will sell its entertainment ticketing business to Zomato for ₹2,048 crore.
The entertainment ticketing business, including movies, sports and events, will continue to be available on the Paytm app during a transition period of up to 12 months, it said.
“One97 Communications Limited (OCL) today announced that it has entered into a final agreement to sell its entertainment ticketing business, which includes movies, sports and events (live performance) ticketing, to Zomato Limited,” the company said.
The company said the Rs 2,048-crore deal underlines the value created by Paytm through its entertainment ticketing business, which has brought choice and convenience to millions of Indians with its services and scale.
Announcing the deal, Paytm said this will help the fintech sharpen its focus on core payments and financial service delivery. Paytm said with its strong focus on long-term value creation, the company is confident of replacing revenues from its entertainment ticketing business by expanding its core business areas of payments and financial service delivery.
A Paytm spokesperson said, “This move will help us focus on long-term growth in our core areas and value creation for all stakeholders.”
On the other hand, Zomato Managing Director and Chief Executive Officer Deepinder Goyal said in a letter to shareholders, “The proposed acquisition will help us expand further and provide new uses (such as movie and sports ticketing) to our customers in the region.”
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