Paytm shares rose 3.1% to hit a fresh 52-week high of Rs 1,007 on December 09 after the company’s Singapore entity approved the sale of Stock Acquisition Rights in Japan’s Paypay to Softbank-based Vision Fund 2. The deal is for Rs 2,364 crore. The Paytm share is now 225% up from its 52-week low of Rs 310, which it touched on May 09, 2023. However, the current stock price is still 114% away from the IPO price.
“We wish to inform you that our wholly owned subsidiary company, One97 Communications Singapore Private Limited (“Paytm Singapore”) informed the company on December 06, 2024, at 12:49 p.m. (IST), that its Board of Directors at its meeting held on December 06, 2024, has approved the sale of all its Stock Acquisition Rights in PayPay Corporation, Japan, to SoftBank Vision Fund 2 entity for net proceeds of JPY 41.9 billion (equivalent to Rs 2,364 crore). This transaction is expected to be completed in December 2024 and is subject to the satisfactory completion of all corporate approvals, execution of transaction documents and customary closing conditions,” said the company in an exchange filing.
According to the company, Paytm will continue to support PayPay with technology and product innovation and the raised proceeds from the sale of SARs will strengthen the consolidated cash reserves of One Communications, which would be utilised for future initiatives.
Paytm Vs Nifty 50
The stock of Paytm has given a return of 9% in the last five days. It has risen 20% in the past one month and gave a multi-bagger return of 153% in the last six months. It has delivered a return of more than 52% from year to date and 50% in the last one year.
To compare, the benchmark index, Nifty 50 has risen 1.35 % in the last five trading sessions. The index has increased by 2% in the past one month and 6% in the past six months. It has risen more than 13% from year to date and 17% in the last one year.