• Source:JND
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Paytm-Zomato Deal: Paytm share price surged over 5% on Thursday after the fintech firm confirmed that it is selling its entertainment and ticketing business to Zomato for Rs 2,048 crore. Following the news, the share price of both companies surged in today's morning trade. Paytm stock jumped as much as 5.4 percent, while Zomato surged over 2.5 percent.

However, both stocks lost the gain as investors took it as a profit-booking opportunity. At around 11:16 am, Paytm's shares were trading at Rs 577.05, up 0.6 percent, while Zomato's stock price was at 259.09, down 0.2 percent.

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Zomato, the food delivery aggregator, informed on Wednesday that it would agree with One97 Communications Limited (OCL), the parent entity of Paytm, to buy its entertainment ticketing business.

As part of the transaction, Zomato will acquire Wasteland Entertainment Pvt Ltd (WEPL) and Orbgen Technologies Pvt Ltd (OTPL). These two are Paytm's two wholly-owned subsidiaries that run its entertainment ticketing business. The deal would be finalized for Rs 2,048 crore.

Paytm confirmed this in a press release as well. The fintech firm said OCL will sell its 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms respectively, to Zomato.

The business transfer will also include the present employees from Paytm's entertainment ticketing company, currently, it has 280 employees, the statement added.

Zomato noted that the acquisition will be completed within 90 days of the signing of the share purchase and sale agreement. Paytm, on the other hand, stated that tickets for films, sports, and events will be available on its app during the transition period of up to 12 months.

Paytm said that selling its entertainment ticketing company will help it focus on its core aim of delivering payment and financial services.

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