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Paytm Share Price Rises 1.45%; Paytm Singapore to Sell SARs in PayPay for JPY 41.9 Billion

Updated on: Dec 9, 2024, 1:47 PM IST
Paytm's Singapore unit to sell SARs in Japan's PayPay to SoftBank Vision Fund 2 for JPY 41.9B, boosting OCL's cash reserves for future growth.
Paytm Share Price Rises 1.45%; Paytm Singapore to Sell SARs in PayPay for JPY 41.9 Billion
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One 97 Communications Limited (OCL/Paytm) has announced that its wholly-owned subsidiary, One97 Communications Singapore Private Limited (Paytm Singapore), has approved the sale of its Stock Acquisition Rights (SARs) in PayPay Corporation, Japan. The SARs, originally acquired in September 2020, will be sold to an entity of SoftBank Vision Fund 2 for net proceeds of JPY 41.9 billion (~₹2,364 crore).

On December 9, 2024, Paytm share price opened at ₹997.45, almost the same as its previous close of ₹976.25. At 9:51 AM, the share price of Paytm was trading at ₹990.40, up by 1.45% on the NSE.

Valuation and Strategic Implications

This transaction values PayPay Corporation at JPY 1.06 trillion, and Paytm Singapore’s SARs at net proceeds of JPY 41.9 billion, after deducting the exercise cost of the SARs. The deal is expected to close in December 2024, pending all necessary corporate approvals and customary closing conditions.

The Paytm Singapore Board approved the sale, citing significant value creation for the company. The net proceeds from the transaction will bolster One 97 Communications’ consolidated cash reserves, supporting future business initiatives. The move is aligned with Paytm’s strategy to maximize value for shareholders and drive growth in its core business operations.

Paytm Singapore spokesperson stated, “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.”

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 9, 2024, 11:00 AM IST

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