Shares of One 97 Communications Limited (Parent Company of Paytm) saw a rise of more than 2% on Friday. The company's shares closed at Rs 975.35 with a rise of 2.04%. During trading, the company's shares reached its one-year i.e. 52-week high of Rs 990.90.
The company's shares rose by 7.71% in the last five days. The stock is up 22.27% in the last one month and 181.36% in six months. There has been a growth of 20% in the last one year. The company's shares have risen 51% since January this year. The market cap of the company is Rs 62.19 thousand crore.
Today, this jump in the share price came when the news came that the domestic fintech company can sell its stake in Japan's PayPay to SoftBank for $ 250 million i.e. Rs 2,117 crore. BSE and NSE have sought clarification from Paytm on this report. In the BSE filing, the company said that the exchange is awaiting a response.
Paytm gets approval to add new UPI users
Last month, Paytm was given approval by NPCI to add new UPI users. Earlier this year, RBI had barred Paytm Payments Bank from adding new UPI users on the Paytm app. This ban was imposed for not following the rules.
Paytm's UPI service was powered by Paytm Payments Bank and after the RBI action, the company had to partner with other banks to continue the UPI service.
- The parent company of Paytm brand is One97 Communications Limited.
- It also has an associate bank, Paytm Payment Bank Limited.
- Services are available on Paytm app through Paytm Payment Bank.
- One97 Communications holds 49% stake in Paytm Payment Bank.
Vijay Shekhar Sharma had demanded lifting of the ban
Paytm founder Vijay Shekhar Sharma had demanded NPCI to remove these restrictions on August 1. NPCI's approval will help Paytm to increase its user base.
Paytm net profit of ₹930 crore in second quarter
Paytm's parent company One 97 Communications has made a net profit of ₹ 930 crore in the second quarter of FY 2024-25, compared to a loss of ₹ 290.5 crore in the same period last year. There was a one-time contribution of ₹1,345 crore to the company's net profit.
Excluding the amount from the sale of movie ticketing business, Paytm has suffered a loss of ₹415 crore in this quarter, which is more than the loss recorded in the same quarter last year. The company had released the results of Q2FY25 i.e. July-September on 22 October.
Operational revenue decreased by 34% on annual basis
The company's operational revenue declined 34% to ₹1,660 crore from ₹2,519 crore in Q2FY25 compared to the previous year.
Rs 1,345 crore earned from selling movie ticketing business
Paytm had recently sold its movie ticketing business to Zomato. Due to Rs 1,345 crore received from this, Paytm has made a net profit of Rs 930 crore.
The cash transaction was approved by the boards of Zomato and Paytm on August 21 (Wednesday). By selling it, Paytm wants to focus on its core financial services.
Paytm was started in 2009
Paytm's parent company One97 Communications launched the Paytm payment app in August 2009. Its founder is Vijay Shekhar Sharma. Currently, Paytm has more than 30 crore users in the country. The market cap of Paytm is around Rs 28 thousand crores.
Graphics Source: VaskarAssets
