One97 Communications surges on forming joint venture general insurance company
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One97 Communications is currently trading at Rs. 596.50, up by 21.15 points or 3.68% from its previous closing of Rs. 575.35 on the BSE.
The scrip opened at Rs. 552.40 and has touched a high and low of Rs. 603.65 and Rs. 552.40 respectively. So far 189180 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 1961.05 on 18-Nov-2021 and a 52 week low of Rs. 511.00 on 12-May-2022.
Last one week high and low of the scrip stood at Rs. 605.65 and Rs. 548.00 respectively. The current market cap of the company is Rs. 37121.15 crore.
The Institutions holding in the company stood at 5.49%, while Non-Institutions held 94.51%.
One97 Communications, which operates under the Paytm brand, has formed a joint venture general insurance company in which it has committed to invest Rs 950 crore over a period of 10 years. The proposal to set up a joint venture firm Paytm General Insurance (PGIL) was approved by the board on May 20.
Initially, One97 Communications (OCL) will hold a 49 percent stake in PGIL while the rest 51 percent stake is to be owned by OCL's managing director Vijay Shekhar
Sharma-led VSS Holding (VHPL). Post the investment, Paytm will hold 74 percent stake in PGIL, reducing VHPL's stake in the company to 26 percent.
The decision of the Paytm board came after its group firm's transaction into a share purchase agreement to acquire Raheja QBE General Insurance Company did not consummate within the stipulated time frame.
One 97 Communications (Paytm) is India's leading digital ecosystem for consumers as well as merchants.
