Brokerage house JP Morgan has given an over weight call on the shares of One 97 Communication, the parent company of Paytm, with a target price of Rs 1,100. SoftBank Vision Funds India Holdings (Cayman) Ltd had sold 2.9 crore shares in the company at an average price of Rs 555.7 apiece. BOFA Securities Europe, Morgan Stanley, Societe Generale bought stake in the fintech company.
The shares of the company rose in trade on Friday. The shares jumped almost six percent in the early trade. The stock of One 97 Communication was trading 4.2 percent higher at 9:42 am. On Thursday, the shares fell to the lowest since May after 4.9 percent equity worth Rs 1,789 crore changed hands.
BOFA Securities Europe SA purchased 50.2 lakh shares in the company, Morgan Stanley Asia Singapore PTE bought 60 lakh shares, and Societe Generale - ODI acquired 70.8 lakh shares.
Brokerage house JP Morgan has noted that devices, lending, indirect costs - troika are driving profitability in financial year 2024. The company remains focused on achieving its September 2023 target of adjusted EBITDA. High quality investments, JP Morgan notes, will continue as company's bigger goal is to start generating higher free cash flow.
On Thursday, Norges Bank, Segantii, Millenium, LMR, Ghisallo bought majority of SoftBank Vision Funds India Holdings (Cayman) Ltd shares in Paytm. BofA Securities was the broker for the deal. SoftBank Vision Funds (SVF) India Holdings (Cayman) held a 17.47 percent stake in Paytm.
Alibaba Group Holding Ltd and its fintech affiliate Ant Group Co are the most significant shareholders in One97 Communications. Singapore E-Commerce Private Ltd holds 6.26 percent of One97, while Antfin (Netherlands) Holdings B.V. has another 24.88 percent. Berkshire Hathaway Inc's BH International Holdings owns 2.41 percent.
In the September quarter, the company reported a widening of consolidated loss to Rs 593.9 crore, against a loss of Rs 481 crore in the same period a year ago. Paytm's consolidated revenue from operations increased by about 76 percent to Rs 1,914 crore during the quarter under review.
On November 15, 86 percent of Paytm's shares became free to trade after the lock-in period ended, allowing investors to sell shares that haven't yet been allowed into the market.
First Published: Nov 18, 2022 8:42 AM IST
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