Board of Paytm’s Singapore arm approves stake sale in Japanese firm PayPay Corporation
Paytm in its regulatory filing said the board of directors of One97 Communications Singapore Private Limited in a meeting on Friday gave an approval for the said transaction. One97 Communications Singapore is a wholly-owned subsidiary of Paytm Singapore.
One97 Communications Singapore will sell Stock Acquisition Rights (SARs) in PayPay Corporation.
The revelation came after exchanges sought clarification from the company regarding the moneycontrol.com article — ‘Paytm to sell stake in Japan’s PayPay to SoftBank for $250 million’.
Citing sources, the media report said One97 Communications was close to finalising a $250 million (approximately Rs 2,000 crore) deal to sell its stake in Japan’s digital payments firm to SoftBank Group.
The sale is in line with Paytm’s strategy to divest non-core assets and strengthen its capital base as it focuses on scaling its core payments business following a challenging year, the report said.The fintech company recently sold Paytm Insider, its entertainment ticketing business, to Zomato for Rs 2,048 crore.Shares of Paytm on Friday hit a fresh record high of Rs 991.25 on the NSE maintaining a four-session gaining streak. The stock closed at Rs 975.35 on the NSE on Friday, gaining by 19.50 or 2.04%.
Paytm reported a consolidated profit after tax (PAT) of Rs 928.3 crore for the quarter ended September 2024, compared to a loss of Rs 290.5 crore in the corresponding quarter of the previous fiscal year, due to a one-time gain. Its revenue dropped 34% year-on-year (YoY) to Rs 1,660 crore against Rs 2,519 crore in the corresponding quarter of the previous year.
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