 "paytm")
Paytm Zomato news: Paytm share price dropped 6.8 per cent from the day's intraday high to hit a low of Rs 411.65 apiece on the BSE on Tuesday, weighed by heavy volume.
Paytm shares hit an intraday high of Rs 442.15 in early deals, but gave up gains to trade near the day's low level at 12:53 PM. From the previous day's close of Rs 424.9 apiece, the stock was down 3 per cent. By comparison, the benchmark BSE Sensex was quoting 0.27 per cent higher.
Nearly 15.07 million equity shares had, together, changed hands on the NSE and BSE till the time of writing of this report.
According to the company's exchange filing, the fintech major is in talks with food aggregator Zomato for a potential acquisition of its movie and event ticketing business.
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"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," Paytm said in a filing dated June 16. READ FILING HERE
However, any discussions currently underway are preliminary and do not involve any binding agreements that require approval or disclosure, Paytm added.
According to a Business Standard report, the potential deal could be in the range of Rs 1,600 crore to Rs 2,000 crore, making it Zomato's second-largest purchase since acquiring Blinkit for $569 million. READ MORE
"We estimate total revenue of Rs 275–300 crore for Paytm's movie and ticketing verticals in FY24. This implies a likely valuation of 5x-7x FY24 sales. Note that the deal would potentially add only around 2.5 per cent to Zomato's FY24 consolidated revenue," said analysts at JM Financial.
Paytm is a tech-based financial services provider, offering mobile payment services to consumers while allowing merchants to receive payments through QR code payment, Payment Soundbox, Android-based-payment terminal, and online payment gateway.
Meanwhile, in a separate development, former Chief Business Officer of WhatsApp, Neeraj Arora, has quit the board of One97 Communications, citing pre-occupation and personal commitments.
"The Board, at its meeting held on June 17, 2024, took note of the resignation tendered by Shri Neeraj Arora, non-executive independent director of the company on account of pre-occupation and other personal commitments. He will accordingly cease to be a non-executive independent director, with effect from the closure of business hours on June 17, 2024," Paytm said in a regulatory filing.
Further, the Board has approved the appointment of Rajeev Krishnamuralilal Agarwal as a Non-Executive Independent Director of the company with immediate effect for a term of five consecutive years, subject to the approval of the members of the company.
