PAYTM Share Price Jumps by 10 Percent as Vijay Shekhar Sharma BUYS 10.3 percent stake; Zomato Zooms

PAYTM Share Price Jumps by 10 Percent as Vijay Shekhar Sharma BUYS 10.3 percent stake; Zomato Zooms

Payment services provider PAYTM share price surged in today’s session as the company founder Vijay Shekhar Sharma announced buying 10.3 percent stake in the company for USD 628 million. Investors and market participants were positively surprised by promoter’s confidence in PAYTM as Sharma will acquire stake from Antfin (Netherlands) Holdings B.V. at current market price.

PAYTM stock has been highly rewarding for initial investors in the company but retail investors have lost massively as the stock declined after listing. PAYTM IPO was one of the biggest in India but the IPO failed in secondary markets. The listing resulted in massive losses for investors.

PAYTM has not performed well financially and that has been one of the main reasons for decline in valuation. In the recent quarters, PAYTM has managed to improve its financials and that has resulted in stability in the company stock. The recent stake purchase by Sharma will surely improve investor confidence in the payment processor. However, stock market players should not forget that an early investor (ANTFIN Holdings) has sold stake in PAYTM. After this deal, Sharma has again become the largest shareholder in PAYTM.

Commenting on the latest move in PAYTM, market expert Prakash Diwan said, "If the promoter is putting in money and endorsing the future at this price, I don't see any reason why a shareholder would need to kind of doubt. The road to profitability is something which probably is more evident than ever before. See the kind of changes that have happened in the business and the way the management has approached that. I think it's definitely going to be very positive for people to see it come back in the reckon."

After food delivery major Zomato announced profit of Rs 2 crore, the stock was trading above Rs 100 levels. Zomato stock was up by nearly 7 percent in today’s trade as the company announced profit for the first time in its history.

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