Zomato Stocks / Zomato Share Price Today, Paytm Share Price Today Live Updates for August 22, 2024: Zomato will acquire Paytm’s movie and events ticketing business for ₹2,048.4 crore. One 97 Communications Limited (OCL), which owns Paytm, has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato.
Zomato, Paytm shares in focus: Brokerages upbeat about Zomato’s Paytm ticketing business deal
Brokerages upbeat about Zomato’s Paytm ticketing business deal
Domestic brokerage Motilal Oswal believed discussion around fair valuation for the business is “too premature,” in the context of Zomato’s scale. However, it has maintained buy rating on Zomato with a target price of ₹300, implying a 15 per cent potential upside.
For Paytm, the brokerage emphasised that the sale of its entertainment business would provide a financial boost, as the transaction will generate significant profits, allowing it to reinvest in other high-potential areas. Maintaining ‘neutral’ rating on the stock at a target price of ₹550, it said, “We estimate Paytm’s EBITDA to turn positive by FY27.”
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Stock market live updates: Zomato to acquire Paytm’s entertainment ticketing business for ₹2,048.4 cr
Zomato on Wednesday said it will acquire Paytm’s movie and events ticketing business for ₹2,048.4 crore. This will allow the food delivery major to strengthen its “going out” business, while enabling Paytm to focus on its core payments and financial services distribution businesses..
In a BSE filing, the two companies said their boards had approved the share purchase and subscription agreement.
In a statement, One 97 Communications Ltd (OCL) said “it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Ltd“
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ALL UPDATES
- August 22, 2024 12:54
Zomato, Paytm share price updates: Shares slip
Zomato shares traded at ₹258.94 on the NSE, down by 0.42% as at 12.50 pm, and Paytm stock slipped 0.99% to trade at ₹568.35.
- August 22, 2024 12:28
Paytm stock in focus: Paytm stocks rise over 2 pc after selling entertainment ticketing business to Zomato: PTI
Shares of Paytm’s owner One97 Communications rose a little over 2 per cent in the morning trade on Thursday after the fintech company said it will sell its entertainment ticketing business to Zomato for Rs 2,048 crore.
The stock of the company climbed 2.09 per cent to trade at Rs 585.05 apiece on the BSE.
On the NSE, it went up 1.82 per cent to Rs 584.50 per scrip. In the intraday trade, shares of the Noida-based fintech company advanced more than 5 per cent to Rs 604.70 and 604.45 apiece on the NSE and BSE, respectively.
Meanwhile, shares of Zomato are trading almost flat at Rs 260.30 and 260 per share on the bourses.
In the morning trade, the 30-share BSE Sensex jumped 166.24 points or 0.21 per cent to 81,071.54, while NSE Nifty advanced 46.25 points to 24,816.45.
On Wednesday, One97 Communications said it will sell its entertainment ticketing business to Zomato for Rs 2,048 crore.
PTI
- August 22, 2024 12:16
Zomato shares in focus: Brokerage recommendations on Zomato
Jefferies on Zomato: Maintain Buy on Company, raise target price at Rs 335/Sh (Positive)
Nomura on Zomato: Maintain Buy on Company, target price at Rs 280/Sh (Positive)
Elara on Zomato: Maintain Buy on Company, target price at Rs 320/Sh (Positive)
Bernstein on Zomato: Maintain Outperform on Company, target price at Rs 275/Sh (Positive)
UBS on Zomato: Maintain Buy on Company, target price at Rs 320/Sh (Positive)
- August 22, 2024 12:16
Paytm stock in focus: Paytm stock rises as Zomato buys Paytm’s ticketing biz for ₹2,048 crore
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- August 22, 2024 11:11
Zomato, Paytm share price in focus: Shares trade flat
Paytm shares traded flat at ₹577.15 on the NSE as at 11.08 am, and Zomato shares traded at ₹259.90.
- August 22, 2024 10:41
Zomato stock in focus: Brokerages on Zomato
Bernstein on Zomato
- Outperform Call, Target Rs 275
- Paytm’s Ticketing Business Acquisition Will Expand TAM For Co Into Event Ticketing Business
- Acquired Business Will Be Part Of New App ‘District’, Expected To Launch In A Few Weeks
- Co Has A Strong Track Record Of Successfully Acquiring Consumer Tech Businesses
Jefferies on Zomato
- Buy Call, Target Raised To Rs 335
- Valuation Of Paytm’s Ticketing Business Acquisition Looks Compelling In Context Of Growth Forecast
- Ultimate Margin Like Food Delivery, Low Capital Intensity Promises High Return Ratio In Steady-state
- Co Up Against Leader ‘Bookmyshow,’ The Question Is Can Zomato Do It Yet Again?
Nomura on Zomato
- Buy Call, Target Rs 280
- Mgmt Believes Paytm’s Ticketing Biz Acqn Will Help To Focus On Areas Where It Expects To Raise GOV
- Co Expects To Increase Gross Order Value From `3,200 Cr In FY24 To `10,000 Cr In FY26
- Biggest Risks Are Smooth Integration Of Acquired Businesses Into New District App
- Cash Burn Initially To Incentivize Users To Migrate From Paytm’s App To Zomato & District Apps
- August 22, 2024 10:35
Paytm proposes to cap salaries for certain board members: Reuters
Digital payments firm Paytm on Wednesday proposed to cap salaries of its non-executive independent directors, as it looks to save costs amid widening losses.
Paytm’s independent board members will earn a maximum annual compensation of up to ₹48 lakh ($57,228), the company said in a release, adding the reduced pay came into effect in April.
Previously, a non-executive independent director earned as much as ₹2.07 crore a year, it said.
Paytm has reported losses after the Reserve Bank of India ordered the company to wind down its payments banking unit in January.
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- August 22, 2024 10:31
Zomato-Paytm deal: Zomato continues to be one of our preferred picks: JM Financial
According to Zomato, the proposed acquisition will help it gain meaningful scale in the events ticketing category. The deal will also help expand the available use-cases for Zomato’s customers to movie and sports ticketing, amongst others thereby improving customer engagement. In fact, Zomato intends to spin-off the entire Going-out segment into a new app (District) that could help it better cater to the customers’ needs. The total deal value is INR 20.48bn (subject to cash and net working capital adjustments at closing). The all-cash deal values the target at ~1x EV/GOV (~7x Sales/ ~71x Adj. EBITDA) and is likely to be closed in 2QFY25 itself.
We tweak our near term estimates for Goingout segment following management guidance to operate it at break-levels and likely cash outflow towards the proposed M&A. However, medium to long term estimates are raised to factor-in the positive impact of the acquisition. We continue to assign a target multiple of 75x and roll forward to Mar’27 EPS to derive a revised TP of INR 300 (vs. INR 260 earlier). Zomato continues to be one of our preferred picks in the listed Internet space as we believe it is well positioned to benefit from robust industry tailwinds across its B2C businesses. Its balance sheet r strong with net cash of INR 125bn as of Jun’24.
Maintains Buy
- August 22, 2024 10:21
Zomato, Paytm share price updates
Zomato shares traded flat at ₹259.39 on the NSE, while Paytm shares were up 1.72% on the NSE to trade at ₹530.90 as at 10.18 am.
- August 22, 2024 10:17
Stock market live updates: Sensex, Nifty open in positive territory
Track bl’s stock market live updates here
- August 22, 2024 10:16
Stock market update: Zomato, Paytm ticketing business deal
“OCL will transfer its entertainment ticketing business to Zomato by transferring the ticketing business to its 100 per cent subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and selling 100 per cent stake in OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively, to Zomato,” a stock exchange filing read.
The transfer will include about 280 existing employees from the entertainment ticketing business.
The transaction value is subject to cash and net working capital adjustments at closing.
- August 22, 2024 10:12
Zomato, Paytm share price update: Stocks traded in the positive territory
Paytm stock rose 3.35% to trade at ₹593.30 as at 9.39 am, and Zomato traded flat at ₹260.17.
- August 22, 2024 10:11
Zomato, Paytm share price gained in early trade on Thursday
Paytm shares rose 2.65% on the NSE, trading at ₹589.25 as at 9.20 am, while Zomato stock was up over 1%.
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Published on August 22, 2024
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