The markets opened with anticipation over last night's development of Zomato's acquisition of Paytm's ticket-selling business. Investors appear to have reacted positively to the development, as the shares of both the principle companies involved in the deal were trading in green in the opening hours of the day's trade on August 22.
Market Movement Post Deal
The Gurugram-based company has acquired the entertainment ticketing business of Paytm in a Rs 2,048 crore deal.
As per the agreement, Deepinder Goyal-led will shell out Rs 1,264.6 crore to entirely acquire cinema ticketing company Orbgen Technologies Pvt Ltd (OTPL) and Rs 783.8 crore to purchase event ticketing company Wasteland Entertainment Pvt Ltd.
The agreement between two of the biggest names in the Indian tech/unicorn scene would entail the transfer of OCL's entertainment ticketing operations to its 100 per cent subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), after which 100 per cent ownership in these subsidiaries—which run the TicketNew and Insider platforms—will be sold to Zomato.
This new 'going out' app would be called 'District'. It is to be noted that Zomato had announced the launch of 'District' on August 1.
The aforementioned deal will also be seen as 'good news' for the embattled tech company led by Vijay Shekhar Sharma, which has witnessed a troubled few months since RBI's action against its Paytm Payments Bank.
Paytm Shares Make Gains
Paytm shares have taken some beatings over the past few months. On Thursday, however, it opened on a euphoric note, making gains of over 3 per cent, early on before dropping a little. Eventually, it gathered some momentum.
At 09:42 IST, the Paytm shares gained 2.62 per cent or Rs 15.05, climbing to Rs 589.10 a share.
However, it is interesting to note that the acquirer's (Zomato) shares do not appear to be doing so well. After starting on a positive note, with gains of over 1 per cent at the beginning, the company shares quickly dipped. At 09:45 IST, the company shares dropped by 0.20 per cent or Rs 0.52, taking the overall value to Rs 259.51 a share.
