Morgan Stanley Acquires Rs 244 Crore Worth of Paytm Parent Firm Shares in Open Market Deal

Morgan Stanley has strategically invested Rs 244 crore in shares of Paytm’s parent company, One97 Communications, through an open market transaction. This development transpired on Friday when Morgan Stanley Asia (Singapore) Pte – ODI, an affiliate of the global financial services major, acquired 50 lakh shares, representing a 0.8% stake in the Noida-based One97 Communications on the National Stock Exchange (NSE). The shares were purchased at an average price of Rs 487.20 apiece, culminating in a deal size of Rs 243.60 crore. Notably, details regarding the sellers involved in the transaction are yet to be disclosed.

This move by Morgan Stanley underscores its strategic interest and confidence in the future prospects of Paytm’s parent company, One97 Communications. As the financial services giant makes this substantial investment, market observers are keenly monitoring the potential implications and future developments in the financial technology sector.

The investment comes at a time when One97 Communications is facing a challenging period in the market. The shares of the company witnessed a significant dip of 20% on Friday following the Reserve Bank of India’s (RBI) directive to Paytm Payments Bank Ltd, owned by One97 Communications, to halt the acceptance of deposits or top-ups in customer accounts, wallets, FASTags, and other instruments after February 29. One97 Communications, despite holding a 49% stake in Paytm Payments Bank, classifies it as an associate rather than a subsidiary.

In response to the recent market developments, shares of One97 Communications closed at Rs 487.20 per piece on the NSE. The company is now navigating challenges as it adapts to the regulatory directives from the RBI.