Paytm share price jumps 21% in 4 days: What's happening, what's next?

Paytm Share Price: These factors could be resulting in the surge in Paytm's share price

Published on: Feb 21, 2024, 14:25:00 IST

By HT News Desk

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Paytm Share Price: Shares of Paytm's parent company One 97 Communications have consistently hit upper circuit limits over the past few trading sessions. The stock locked at a 5% upper circuit limit at ₹395 per share in its fourth consecutive day of a 5% rally today. In the past four days, the stock has gained a total of 21%. These factors could be resulting in the surge in Paytm's share price:

Paytm share price: A QR code for the Paytm digital payment system at a store in Mumbai, India. (Bloomberg)

RBI's deadline extension

The Reserve Bank of India (RBI) granted an additional 15 days, until March 15, for Paytm Payments Bank (PPBL) to finish deposits, credit transactions, or top-ups.

Paytm's Axis Bank decision

Amid concerns about potential disruptions in merchant payments, Paytm announced relocation of its nodal account to Axis Bank. This means that merchants will be able to sustain digital payment acceptance through the Paytm QR code or card machine. Although after March 15, customers will no longer be able to deposit funds into their Paytm Payments Bank accounts. They can continue using, withdrawing, and transferring funds, Paytm said.

Paytm CEO's message

Vijay Shekhar Sharma, founder and CEO of Paytm, reassured users that Paytm QR, Soundbox, and card systems)will continue to function after March 15 as well.

Bernstein's rating to Paytm

Bernstein gave an ‘outperform’ rating to Paytm, setting a target price of ₹600 per share as it said that RBI’s actions target Paytm Payments Bank (PPBL) and will not disrupt other functions of Paytm while global brokerage firm Jefferies suspended coverage of Paytm until there is more stability.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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