Paytm share plunges 3% amid discussions with Zomato to sell movie ticketing business
Paytm, witnessed a 3 per cent downfall during Tuesday's trading session. This decline occurred amid ongoing discussions with food delivery giant Zomato regarding the potential sale of its movie ticketing business.During intraday trading on the NSE, Paytm shares fell to a low of ₹411 apiece, marking a 3.31 per cent decline from the previous closing price.
The stock partially recovered as the session progressed. By 2:58 pm, the shares were valued at ₹417.3, still down 1.82 per cent from the previous close.Also read: Defence stocks surge up to 20% with Paras Defence, HAL, Garden Reach Shipbuilders, Mazagon Dock at record highsIn a regulatory filing on June 17, Paytm confirmed to the stock exchanges that it is in "preliminary" discussions with Zomato regarding the transfer of its entertainment business.“The company routinely explores various strategic opportunities aimed at enhancing shareholder value.
The potential transfer of Paytm’s entertainment business, a component of our marketing services, is one opportunity under consideration. As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses," the company said in a regulatory filing.Meanwhile, Zomato updated the exchanges, indicating that the company is in discussions with Paytm about the potential acquisition of Paytm's movie ticketing business, on June 16."We have noticed that there are certain news articles circulating in the mainstream media with the subject 'Zomato in talks to acquire Paytm’s movies, ticketing business'.
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