Paytm, Zomato shares climb up to 4% today amid talks over former's movie ticketing biz

Shares of One 97 Communications Ltd (Paytm) and Zomato Ltd climbed up to 4 per cent in Tuesday's trade after the two fintech companies clarified that they were in preliminary discussions on Paytm's movie ticketing business. Zomato and Paytm though insisted there is no binding decision at this stage that would warrant a board approval and subsequent disclosure in accordance with applicable law.

Following the development, Shares of Zomato climbed 1.5 per cent to hit a high of Rs 189. Paytm shares advanced 4.05 per cent to hit a high of Rs 442.15.

Paytm said it is in preliminary talks with Zomato to sell its movies, ticketing business, adding that it routinely explores various strategic opportunities aimed at enhancing shareholder value. Paytm said the potential transfer of Entertainment business, a component of its Marketing Services, is one opportunity under consideration. It had in its recent earnings call said that its focus will be on payment and financial services along with digital goods commerce, which are designed to help merchants scale their businesses.

"We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law. The above discussion is being undertaken with an intent to further strengthen our Going-out business and is in line with our stated position of focusing only on our four key businesses currently," Zomato said.