One 97 Communications Limited that owns the brand Paytm, announced that its wholly-owned subsidiary, One97 Communications Singapore Private Limited (Paytm Singapore), has approved the sale of Stock Acquisition Rights (SARs) held in PayPay Corporation, Japan (PayPay).
These SARs, acquired by Paytm Singapore in September, 2020 will be sold to a SoftBank Vision Fund 2 entity for net proceeds of JPY 41.9 billion (equivalent to Rs 2,364 crore), the company said. Through this deal, PayPay is valued at JPY 1.06 trillion and accordingly, PayPay SARs held by Paytm Singapore are valued at net proceeds of JPY 41.9 billion (after netting off the exercise cost of SARs). The transaction is expected to be closed in December 2024 subject to the satisfactory completion of all corporate approvals and customary closing conditions, it informed in a regulatory filing.
Paytm Singapore spokesperson said, “We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We remain fully committed and will continue to support PayPay’s product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan.”
The Board of Paytm Singapore has approved the sale of the above-mentioned SARs. The SARs sale net proceeds would fortify the consolidated cash reserves of OCL and help drive future business initiatives, focused on maximizing value creation for shareholders.
Earlier in October, Paytm had released its fiscal second quarter earnings with profit at Rs 928.30 crore, in comparison to a loss of Rs 290.50 crore during the corresponding quarter of previous financial year. “With a one-time exceptional gain of Rs 1,345 crore, on account of sale of entertainment ticketing business, we achieved PAT of Rs 930 crore in Q2 FY 2025,” the company had said in a regulatory filing. It posted revenue from operations at Rs 1659.50 crore, down 34.1 per cent as against Rs 2518.60 crore during the same period of FY24.