Paytm shares rise 3% as co completes transfer of events biz to Zomato

Paytm on Tuesday announced the completion of transferring its events and movie ticketing business to Wasteland Entertainment and Orbgen Technologies. Additionally, Zomato has subscribed to the share capital of both these subsidiaries.

Following the update, shares of Paytm rose 2.5% on BSE to the day’s high of Rs 559.65, while those of Zomato gained nearly 1% to Rs 257.80.

“We wish to inform you that as part of this transaction, the transfer of the events and movies ticketing business to Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL), respectively, along with subscription by Zomato Limited in the share capital of both subsidiaries, has been completed today, i.e., August 27, 2024. Simultaneously, the 100% shareholding of the Company in WEPL and OTPL has been transferred to Zomato Limited, resulting in both entities ceasing to be subsidiaries of the Company,” said Paytm in a filing to the exchanges.

According to the filing, the payment of the transaction will be done on the completion of post-closing audit adjustments.

“Further to our intimation dated August 21, 2024, regarding the execution of the Share Purchase and Subscription Agreement (“SPSA”) with One 97 Communications Limited (“OCL”), WEPL, and OTPL, to inter-alia acquire the entertainment ticketing business of OCL, OTPL and WEPL (as detailed under the SPSA and the transaction documents), we would like to inform the exchange(s) that the Company has completed the acquisition of OTPL and WEPL on August 27, 2024,” informed Zomato to the stock exchanges via a company filing.Also read: NBCC to consider bonus issue, shares zoom 8%Earlier this week, shares of Paytm had tumbled after reports surfaced that SEBI had issued show-cause notices to Vijay Shekhar Sharma, the founder of the company along with a few other former board members.However, the company later clarified that it is an older issue and they had already made the relevant disclosures on this matter in its financial results for the quarter and year ended March 31, 2024, as well as the quarter ended June 30, 2024.

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