One97 Communications reached a record closing price since its market debut, supported by positive analyst views on its merchant lending business. Simultaneously, Granules India’s promoter sold a 6.95% stake for ₹1,501 crore to support the company’s capital funding plans. Both stocks reacted positively to their respective developments.
One97 Communications, the company behind Paytm, reached a significant milestone on Friday, closing at ₹1,807.5. This marks the stock's highest closing price since it entered the public market. The rally follows a difficult period for the company, which saw the stock hit an all-time low of ₹317.15 in August 2024 after regulatory scrutiny impacted its banking operations.
Paytm’s Path to Recovery
The recent stock performance has been supported by positive commentary from global financial firms like Bernstein and Jefferies. Analysts have highlighted growth potential in the company’s merchant lending business and the possibility of new income streams from UPI-based payment services. Despite this strong recovery, investors should note that the stock price remains below its initial public offering price of ₹2,150. While the sentiment has turned positive, the company’s profitability remains sensitive to future regulatory decisions regarding the structure of merchant fees on UPI transactions. The key monitorable for shareholders will be how the management balances growth in lending with evolving regulatory compliance requirements.
Granules India Promoter Stake Sale
In a separate development, the promoter of pharmaceutical firm Granules India, Krishna Prasad Chigurupati, sold a 6.95% stake in the company on Friday. The transaction was completed through a block deal, generating total proceeds of ₹1,501 crore. This sale involved the transfer of 1.72 crore shares. According to the company, the funds raised are intended to support the second part of the company's preferential issue, which is a method of raising capital by issuing shares to specific investors.
The stake sale attracted significant attention from institutional investors, with major participants including the Smallcap World Fund, Goldman Sachs, and various mutual funds. As a result of this transaction, the promoter group’s total holding in the company has decreased from approximately 38.02% to 31.08%. Despite this large supply of shares hitting the market, Granules India’s share price showed resilience and ended the session 1.6% higher. For investors, the main point of interest is the company's ability to maintain its growth trajectory after this change in ownership structure, as well as the execution of the projects funded by this capital infusion.