Paytm-Zomato Deal: Payment Company's Shares Sink 2% After Early Gains

Reports suggesting ongoing talks between Zomato and Paytm over the latter's sale of its ticketing business emerged towards the end of the previous week. In what was the first litmus test for Paytm post the news, which was later confirmed by the company, the company shares started on a good note on Tuesday, June 18.

The share jumped 4 per cent in the early hours of the day's trade. However, it was not all moonlight and roses thereafter, as the value of the shares slumped thereafter. In fact, at the halfway mark, the price dropped 2.13 per cent or Rs 9.05, taking the overall value to Rs 416.00.

The Troubled Unicorn

Paytm's ticketing business is reported to have made annual sales of USD 208 million. Reports also suggest, that these talks are in their advanced stages.

Paytm has not had the best 2024, as troubles for the once-rising star of the 21st-century unicorn started mounting after the Reserve Bank of India's action on its Payments Bank services, which had to cease operations due to certain norm violations.

The company has only seen its fortunes tumble from there. Post the debacle, the company shares dropped by 32.32 per cent in the past 6 months. It, however, has managed to make some recovery in the past one month. The shares have risen 18.51 per cent or Rs 65.10 in one month.

Zomato Shares Gain

As for Zomato, the company has been consolidating its business by investing and expanding its existing business; recently, it increased its investment in subsidiary Blinkit by Rs 300 crore, taking the total count to over Rs 2,000 crore.

As a result of this, investors appear to have gained confidence in the Deepinder Goyal-run company.

The company's shares were trading at an increase of 0.24 per cent or Rs 0.44, taking the cumulative value of each individual share to Rs 186.68.