Paytm Hits 52-Week High After ₹2,364 Crore Stake Sale in PayPay

On December 9, Paytm's stock rose by over 3% during trading, achieving a new 52-week high after the company's board approved a stake sale in Japan-based PayPay for ₹2,364 crore.

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Paytm share price surged 3.14% on the NSE, hitting an intraday and 52-week high of ₹1,007 per share, compared to the previous close of ₹976.25. Over the past five sessions, the stock has gained 10.11%. However, by 10:10 AM, it had pared most of its gains, trading 0.88% higher at ₹984.80 per share.

Paytm's parent company, One97 Communications, revealed in a regulatory filing that its Singapore-based subsidiary had approved selling its Stock Acquisition Rights in PayPay Corporation to SoftBank Vision Fund 2 for ₹2,364 crore.

The Stock Acquisition Rights, acquired in exchange for services, represent 1,59,012 shares or a 7.2% stake in PayPay on a fully diluted basis.

In the filing, the company noted, "On December 06, 2024, at 12:49 PM (IST), the Board of Directors of One97 Communications Singapore Private Limited approved the sale of all its Stock Acquisition Rights in PayPay Corporation to an entity under SoftBank Vision Fund 2 for net proceeds of JPY 41.9 billion (approximately ₹2,364 crore)."

This transaction values PayPay at approximately ₹32,000 crore. The deal is expected to be finalized by the end of December 2024.

A Paytm spokesperson expressed gratitude for the collaboration, saying, "We thank Masayoshi-san and the PayPay team for the opportunity to co-create a mobile payment revolution in Japan. We are now focusing on integrating AI-powered features to support PayPay’s growth vision in Japan."

Paytm, a leading fintech company in India, is known for its pivotal role in the mobile QR payments revolution. The company develops technologies that empower small businesses through digital payments, business loans, and advertising services. Its app is also popular for booking movie, flight, bus, and event tickets, supporting Paytm's mission of integrating half a billion Indians into the mainstream economy using technology.