• Source:JND
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Paytm Share Price:  Shares of One97 Communications, the parent company of fintech firm Paytm, rose over 3% to a new 52-week high of Rs 1,007 in intraday trade on Monday after the Indian fintech firm announced selling a stake in PayPay Corp to SoftBank. This stock has climbed 225 per cent from its 52-week low of Rs 310 in May of this year.

Earlier on Friday last week i.e. on December 6, Paytm announced that the board of directors of its wholly-owned subsidiary One97 Communications Singapore Private Limited, approved the sale of all its stock acquisition rights (SARs) in Japan's PayPay Corporation to SoftBank Vision Fund 2 Entity for a net amount of 41.9 billion yen, or Rs 2,364 crore.

One97 communication, in an exchange filing, said that the value of PayPay through this deal is JPY 1.06 trillion. Paytm Singapore's PayPay SAR value is a net amount of JPY 41.9 billion (after deducting the SAR exercise cost). As per reports, the deal is expected to be finalised by December 2024.

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Reasons behind today's rally

The company elaborated on the rationale behind the deal, saying that Paytm Singapore has approved the sale of the SAR. The company stated that the net profit from the sale of SARs would strengthen the consolidated cash reserves of One97 Communications Limited and help in pursuing future business initiatives focused on maximizing value creation for shareholders.

Fourth consecutive day of growth

On Monday, the share price of Paytm climbed for the fourth consecutive day and gained over 9.5 per cent during this period. Today's rally pushed the stock past the Rs 1,000 mark, and it also scaled a new 52-week high.

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