One97 Communications has sold its stake in Japan’s digital payments firm PayPay Corporation.
The Paytm parent confirmed the deal in a regulatory filing to the stock exchanges on Friday. Paytm holds a 7.2 per cent stake in PayPay Corporation
"We have been informed by One97 Communications Singapore Pvt Ltd, a wholly owned subsidiary of the company at 12.49 PM (IST), that its Board of Directors at its meeting held today i.e., December 6, 2024, approved sale of Stock Acquisition Rights (SARs) in PayPay Corporation, Japan,” Paytm said.
While the company did not disclose the financial details of the transaction, it is estimated at around $240 million or ₹2,000 crore. The sale is seen as part of its effort to exit non-core assets.
Reports of the transaction led to the shares of Paytm ending higher at the stock exchanges on Friday. On the BSE, the scrip settled at ₹975.80, marking a gain of 2.02 per cent or ₹19.30 over the previous close.
In August, Paytm had announced the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Ltd in a deal valued at ₹2,048 crore.
The company said it would first transfer the entertainment ticketing business to its wholly owned subsidiaries, Orbgen Technologies Pvt Limited and Wasteland Entertainment Pvt Ltd.
It will subsequently sell 100 per cent stake in these subsidiaries which operate the TicketNew and Insider platforms to Zomato.
OCL had then disclosed that the transfer will also include around 280 existing employees from the entertainment ticketing business.
The sale was done with a view to sharpen its focus on core payments and financial services distribution.
During the second quarter ended September 30, 2024, Paytm posted a net profit of ₹928.3 crore compared with a loss of ₹ 290.5 crore in the previous year period due to the exceptional gain from the sale of the entertainment ticketing business.
The period, however, saw its revenue from operations falling 34.1 per cent year on year to ₹1,659.5 crore. It posted an EBITDA (earnings before interest, taxes, depreciation, and amortization), before ESOP cost, of ₹153 crore.
