A previous deal to offload the transport hub at Staverton collapsed earlier this year

Council chiefs are hoping to sell off Gloucestershire Airport by April “at the latest”, a local authority leader has said. The 375-acre transport hub at Staverton is currently on the market for a guide price of £25m, with final bids closing on September 30.

In March, a deal to offload the airport by its owners – Cheltenham Borough Council and Gloucester City Council – to preferred buyer Horizon Aero Group collapsed after the authorities said they could not accept the terms of the sale.

The councils relisted the airport for sale in June after receiving “a number of approaches” from interested parties and have since said they have received a “good number of enquiries” about the site.

Jeremy Hilton, leader of Gloucester City Council, said last week the authorities are hoping to offload the airport by the end of the financial year.

Speaking at a council meeting, he said: “We’re hoping to get to a situation where we’ve confirmed a buyer and sold the airport by the end of this financial year at the latest, but it could well be earlier than that. But don’t take that as absolute, that’s the intention.

“The issue, as we know, is that when you are selling something you don’t always get to sell it on the day you think you’re going to sell it – sometimes it takes longer.”

The airport, which is home to some 50 businesses, handles more than 66,000 flights a year, but has struggled financially in recent times. In April, it was reported the airport had filed a £2.1m loss for the previous financial year.

Councillor Rowena Hay, leader of Cheltenham Borough Council, said earlier this year the council was “hopeful” the renewed sale process would attract “the right partner for the airport’s future”.

“We will work with partners and stakeholders to update as the new sale process proceeds,” she said at the time.

In 2021, both local authorities borrowed £7.5m to spend on improvements to Gloucestershire Airport. But, according to Gloucester City Council’s head of finance, the airport has failed to make any repayments on the loan since 2022.

“I think quarterly check in with the airport is fine when it’s business as usual, but at a critical crisis point I would have said we should be contacting them almost weekly,” said Stephanie Chambers, leader of the Conservative group.

Andrew Hearne, director of place, assets and regeneration, told the meeting that officers are in weekly contact with Gloucestershire airport chiefs.

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Patch is opening its latest hub in the historic Armada House

A workspace provider backed by the team behind Innocent Drinks is opening a base in Bristol in November. Patch’s new co-working hub will open at Armada House – an historic building in the old city that originally served as the offices for Bristol Waterworks Company.

Set across 13,000 sq ft just off Baldwin Street, the hub will have co-working studios, private offices, meeting rooms, large-scale event spaces and a rooftop lounge and terrace. It will also host a range of events including talks, workshops, industry gatherings and product launches, according to the company.

Patch Bristol will be the seventh site for the workspace firm, which already has hubs in Bournemouth, Gloucester, Twickenham, York, High Wycombe and Chelmsford.

Freddie Fforde, founder and chief executive of Patch, said: “Bristol has an incredible combination of entrepreneurial ambition, creativity and civic purpose.

“As our plans have developed, we’ve loved getting to know more of the founders, businesses and organisations shaping the city. We want Patch to become a home for that energy: somewhere people can build businesses, exchange ideas and start new collaborations.”

Built in 1903 as the headquarters of the Bristol Waterworks Company, Grade II-listed Armada House has been completely refurbished by Patch. The company says it has “reimagined” the property by adding “bold colour, contemporary design and beautifully crafted interiors”, while retaining original features.

“Bristol was a natural choice for Patch,” said Mr Fforde. “The city has an extraordinary concentration of creative talent, tech businesses, B Corps and climate innovators, alongside world-class universities and a thriving film and media sector with a global reputation.”

Patch’s backers include JamJar, the venture fund created by the team behind Innocent Drinks, alongside Active Partners and Matt Clifford CBE, co-founder of Entrepreneur First.

Patch will be led in Bristol by a local director and team.

Paloma Strelitz, creative director and head of product at Patch, said: “Bristol has an extraordinary crossover between entrepreneurship, creativity and culture. Some of the most interesting ideas emerge when people from different worlds connect. Patch can help join some of those dots, creating more opportunities for people and ideas to come together in the centre of Bristol.”

Shares of One 97 Communications, the parent company of Paytm, dropped over 2.5% on Tuesday after the government directed banks and payment system providers not to levy charges on UPI transactions of up to Rs 2,000, leaving investors speculating about what happens to transactions above the said amount.

Paytm shares dropped to Rs 1,761.80 apiece on NSE on Tuesday morning. This comes a session after the stock hit a fresh 52-week high of Rs 1,840 apiece, nearly doubling in less than six months from its 52-week low of Rs 930.6 apiece which the stock had hit in March this year.

As per a gazette notification dated Monday, no bank or system provider would directly or indirectly impose any charge on a person making or receiving a payment through RuPay debit card or UPI transaction of up to Rs 2,000. However, the government did not specify whether charges would be applicable to transactions above Rs 2,000, to be paid by merchants. Currently, there are no charges levied on UPI transactions, irrespective of the amount.

Also read |Banks cannot impose charges on UPI payments of up to Rs 2,000, govt says

The latest notification comes after an amendment to the Payment and Settlement Systems Act, 2007, which provides a framework for imposing a Merchant Discount Rate (MDR) on payments through UPI and other notified electronic payment modes. The government in a statement explained the rationale for imposing charges, stating that with exponential transaction volumes, the system requires significant and continuous upgrades in cybersecurity, fraud prevention, and infrastructure.

Charges were required for market expansion and self sustainability, it said, adding that it is necessary to increase competition by encouraging more companies to expand operations, which requires a self-sustaining revenue model. Reliance on subsidies alone is not viable for the next wave of growth, and a balanced framework is required to ensure that UPI remains robust, inclusive and future-ready, the statement further said.

Why are Paytm shares falling today?

For nearly seven years, UPI became more and more popular as a transaction could be made so quickly without paying any additional charges. By specifically shielding UPI payments only up to Rs 2,000, the government has created the legal and regulatory space for a merchant discount rate, or MDR, to be eventually imposed on selected higher-value merchant transactions. No such charge has yet been announced.The government has however repeatedly clarified that UPI will remain free for citizens and person-to-person transactions will continue without charges. If MDR is introduced, it would only apply to a limited section of merchant transactions, above a specified threshold, and at a rate substantially below typical debit or credit-card MDR.

Finance Minister Nirmala Sitharaman has said any MDR would apply to merchants and not end-users, arguing that revenues generated within the payments ecosystem would enable banks and fintech companies to invest further in infrastructure, innovation and security.

While discussing the costs of digital-payment infrastructure, RBI Governor Sanjay Malhotra in August said, “Someone has to pay the cost”. He stressed that the RBI wants digital payments to remain accessible, affordable and safe, but also sustainable.

Also read | UPI charges above ₹2000? Government opens door to new merchant fee regime

Should you buy, sell or hold Paytm share price?

Jefferies recently increased its price target for the stock to Rs 2,100 apiece from Rs 1,600 apiece, while maintaining its ‘Buy’ call. The international brokerage highlighted that Paytm stands out on monetisation of its client base in near-zero MDR regime, which is now changing favourably. The fintech platform’s 4.9 crore merchant base and strong loan-origination model should drive 25% revenue CAGR over FY26-29, which, along with operational synergies will aid sharp rise in EBITDA and profit, it added.

Initiative in credit on UPI, cloud AI inference models, wealth offering and foray into overseas markets can lift growth, the international brokerage said, as it increased earnings estimates for FY28-29 by 20-25% to factor 25 bps MDR on UPI.

Bernstein recently named Paytm its top pick, citing robust merchant lending growth, operating leverage and the potential introduction of MDR on UPI as key drivers of earnings growth.

With a target price of Rs 2,200, Bernstein expects Paytm’s EPS to reach Rs 78 by FY29. Even after excluding any potential impact from MDR on UPI, its FY29E EPS estimate stands at Rs 54, still above the Rs 46 consensus estimate.

Also read | Jefferies’ 25% CAGR club: Paytm, Groww among 5 financial stocks that can deliver up to 25% returns

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

PMI survey data from S&P Global showed worldwide economic growth accelerating further in August, led by the fastest growth among the advanced economies since early 2022. Advanced economy growth was led by the US, but growth has