Financial services major Morgan Stanley made a strategic move on Friday by acquiring shares of Paytm’s parent company, One97 Communications, for Rs 244 crore through an open market transaction. The deal, executed by Morgan Stanley Asia (Singapore) Pte – ODI, involved the purchase of 50 lakh shares, constituting a 0.8% stake in Paytm, at an average price of Rs 487.20 apiece.
Despite this financial boost, shares of One97 Communications Ltd witnessed a 20% decline on Friday. This decline was attributed to the Reserve Bank of India’s (RBI) directive to Paytm Payments Bank Ltd (PPBL), instructing it to cease accepting deposits or top-ups in any customer accounts, wallets, FASTags, and other instruments after February 29. One97 Communications Ltd, holding a 49% stake in Paytm Payments bank, classifies it as an associate rather than a subsidiary.
Market Response and Future Outlook
Following the transaction, Paytm’s parent company faces additional challenges in light of regulatory scrutiny. The market responded with a 20% slump in One97 Communications Ltd shares, closing at Rs 487.20 per piece on the National Stock Exchange (NSE).
Other Notable Transactions
In a parallel development, Mauritius-based private equity fund 2I Capital PCC executed a bulk deal on the NSE, selling shares of Swan Energy Ltd for Rs 164 crore. The transaction involved the offloading of 25 lakh shares at an average price of Rs 657.27 apiece. Swan Energy Ltd’s scrip observed a 4.76% surge, settling at Rs 680.10 apiece on the NSE.
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