Paytm hits 52-week high after Singapore arm to sell stake in Japan's PayPay

Paytm currently has a cash balance of over Rs 10,000 crore. The Rs 2,364 crore sale would expand it by over 20 per cent

One 97 Communications, the parent company of Paytm, shares gained 3.1 per cent in Monday's trade and logged a 52-week high at Rs 1,007 per share. The buying of the stock came after the company's Singapore arm approved the sale of stock acquisition rights (SARs) held in PayPay Corporation, Japan (PayPay). 

 

Around 10:05 AM, Paytm share price was up 0.95 per cent at Rs 9,85.1  per share. In comparison, BSE Sensex was down 0.27 per cent at 81,487.24. The market capitalisation of the company stood at Rs 62,764.45 crore. The 52-week low of the company was at Rs 310 per share. 

 

"These SARs, acquired by Paytm Singapore in September 2020 will be sold to a SoftBank Vision Fund 2 entity for net proceeds of JPY 41.9 billion," the filing read. 

 

It added: Through this deal, PayPay is valued at JPY 1.06 trillion and accordingly, PayPay SARs held by Paytm Singapore are valued at net proceeds of JPY 41.9 billion or Rs 2,364 crore (after netting off the exercise cost of SARs). The transaction is expected to be completed in December 2024.  

 

At present, PayPay is valued at about Rs 60,000 crore (around USD 7 billion). Paytm’s Singapore unit acquired these SARs in September 2020. 

 

The firm currently has a cash balance of over Rs 10,000 crore. The Rs 2,364 crore sale would expand it by over 20 per cent. 

 

"We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan,” a Paytm spokesperson said. 

 

Paytm is a mobile payment and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce. Paytm’s mission is to serve half a billion Indians and bring them to the mainstream economy with the help of technology. 

 

Paytm offers solutions for merchants and businesses, such as digital payments, business loans, and advertising services. Its app is also widely used for booking tickets for movies, flights, buses, and events.

 

In the past one year, Paytm shares have gained 48.6 per cent against Sensex's rise of 17 per cent.