Paytm Stocks Rise up 5% as it Declares to Sell Entertainment Ticketing Business to Zomato

Shares of Paytm surged 5% after the opening bell on Thursday, August 21, following the company’s announcement that it would be selling its entertainment ticketing business to Zomato for ₹2,048 crore. 

Shortly after trading began, Paytm’s stock was up 5.3%, trading at ₹604.7 per share on the NSE, compared to the previous close. However, within minutes, the stock trimmed some of these gains, settling at ₹586.9 per share by 9:23 am, still up by 2.24%. 

Meanwhile, Zomato’s shares reached a high of ₹267 per share shortly after the market opened, reflecting a 2.3% increase from the last close. By 9:24 am, the stock had moderated slightly, trading at ₹262.46, up 0.93% from the previous session’s close. 

On Wednesday, August 21, Zomato informed the stock exchanges that it would be entering into an agreement with One97 Communications Ltd (OCL), the parent company of Paytm, to acquire its entertainment ticketing business. The acquisition involves Zomato taking over Wasteland Entertainment Pvt Ltd (WEPL) and Orbgen Technologies Pvt Ltd (OTPL)—two wholly-owned subsidiaries of Paytm that operate the TicketNew and Insider platforms— for ₹2,048 crore. 

Paytm confirmed the development in a press release, stating that OCL would sell its “100% stake in its subsidiaries OTPL and WEPL” to Zomato. The deal also includes the transfer of around 280 employees from the entertainment ticketing business. 

Zomato expects to complete the acquisition within 90 days of signing the share purchase and sale agreement. During a transition period of up to 12 months, movie, sports, and event ticketing will still be available on Paytm’s app. 

Paytm explained that the sale of its entertainment ticketing business reflects its strategic focus on payments and financial services distribution. In recent quarters, the company has expanded its offerings in insurance, equity broking, and wealth distribution, seeing significant opportunities for cross-selling these services and strengthening its position as a financial services distributor. 

“We developed the entertainment ticketing business to meet market demands at the time. As it now transitions to Zomato ownership, we extend our gratitude to every team member who helped build this business. It has been a privilege to grow this venture with such an incredible team. This move allows us to focus on long-term growth in our core areas and create value for all stakeholders,” a Paytm spokesperson said. 

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