However, the stocks pared some gains to trade at INR 576.8 per share at 11.30 AM, just marginally above the previous close at INR 573.
On Wednesday (August 21), Paytm signed a definitive agreement to sell its entertainment ticketing business to Zomato for an INR 2,048 Cr all-cash deal.
As a result, Zomato shares also gained 2.71% intraday to reach INR 267.00 apiece on the BSE
Shares of Paytm
rallied 5.4% to touch an intraday high of INR 604 apiece on the BSE today (August 22) a day after the fintech giant announced to sell its entertainment ticketing business to foodtech major Zomato for INR 2,048 Cr.
However, the stocks pared some gains to trade at INR 576.8 per share at 11.30 AM, just marginally above the previous close at INR 573.
On Wednesday (August 21), Paytm signed a definitive agreement to sell its entertainment ticketing business to Zomato for an INR 2,048 Cr all-cash deal.
As a result, Zomato shares also gained 2.71% intraday to reach INR 267.00 apiece on the BSE. By 11.30 AM, Zomato shares too corrected gains to trade at 259.55, a slight dip from the previous closing at INR 259.
Under the deal, Paytm will transfer its movie ticketing business to its subsidiary Orbgen Technologies Pvt Ltd (OTPL) and its sports and events ticketing business to another wholly-owned subsidiary Wasteland Entertainment Private Ltd (WEPL).
Eventually, Zomato will acquire a 100% stake in the two subsidiaries (OTPL and WEPL) and will take over the ownership of the two entities. As part of the transaction, nearly 280 employees from Paytm’s entertainment ticketing business will now join Zomato.
The deal, expected to close by September, will pave the way for scaling up Zomato’s ‘going-out’ business. Additionally, the acquisition will set the stage for the debut of Zomato’s latest app ‘District’, which the company plans to launch in the coming weeks.
In a shareholder letter, Zomato laid out its plans to make the most of the new acquisition and diversify beyond food ordering and quick commerce.
Following the deal, many brokerage firms have either maintained their buy rating or raised their target prices.
The fintech major also proposed salary cuts for its board members Yesterday before its annual general meeting (AGM) scheduled on September 12, 2024.
(The story is to be updated soon)
