Paytm shares hit 52-week high after restructuring subsidiaries
What's the story
Shares of One97 Communications Limited, the parent company of digital payments giant Paytm, hit a new 52-week high on Monday. The stock rose 2.46% to ₹1,353.1 and touched an intraday peak of ₹1,364.8. The surge comes after the company announced its successful acquisition of remaining stakes in three key subsidiaries as part of its ongoing group structure simplification process.
Strategic move
Paytm's acquisition of key subsidiaries
As part of its restructuring, Paytm has acquired 9.99% equity shares in Foster Payment Networks Private Limited, 67.55% in Paytm Insuretech Private Limited, and 51.22% in Paytm Financial Services Limited (PFSL). With these acquisitions, all three entities have now become wholly-owned subsidiaries of One97 Communications Ltd. The company also made four step-down subsidiaries—Admirable Software Ltd., Mobiquest Mobile Technologies Pvt Ltd., Urja Money Pvt Ltd., and Fincollect Services Pvt Ltd.—wholly-owned through direct and indirect shareholdings via PFSL.
Market response
Paytm's stock performance and market activity
The announcement of these acquisitions has led to a surge in Paytm's stock. The shares have gained significantly from their March low of ₹651.50, more than doubling in value over the past nine months. On Monday, the stock witnessed heavy trading with 35.22 lakh shares changing hands for a total value of ₹475.96 crore and a delivery-to-traded quantity ratio of 39.58%.
Financial standing
Paytm's market capitalization and index inclusion
With a market cap of ₹86,505.54 crore, One97 Communications Ltd is part of the Nifty Midcap 50 index. The company continues its recovery from regulatory challenges faced earlier this year. The successful completion of these acquisitions marks a major milestone in Paytm's ongoing efforts to simplify its group structure and strengthen its financial services business.