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Paytm Share Price Today: Hits 5% upper circuit. Will it completely recover?
Paytm Share Price: Paytm founder and CEO Vijay Shekhar Sharma said that its QR code and soundbox facilities will continue to work.
Paytm Share Price: Paytm shares stayed in the green with a 5 percent rise today (February 20). This comes after Paytm founder and CEO Vijay Shekhar Sharma said that its QR code and soundbox facilities will continue to work even after the March 15 deadline set by the Reserve Bank of India (RBI).
Read more: ‘Regulatory compliance not optional’: Union minister Rajeev Chandrasekhar on Paytm Payments Bank
What Paytm CEO Vijay Shekhar Sharma said?
“Paytm QR, soundbox and EDC (card machine) will continue to work like always, even after March 15. The latest FAQ issued by RBI on point #21 clarifies it unambiguously. Do not fall for any rumour or let anyone deter you to championing Digital India," he wrote on X (formerly Twitter).
How are Paytm shares performing today?
Read more: Vijay Shekhar Sharma's message on Paytm QR code, soundbox: Will work ‘today, tomorrow…’
Paytm shares were trading at the upper circuit at ₹376 on the National Stock Exchange (NSE). So far in 2024, the stock has tanked 41 percent. In the previous session, Paytm gained 5 per cent as the stock hit the upper circuit for the second straight session.
What Jefferies India said on Paytm?
Jefferies India discontinued its rating on Paytm until the “news flow settles down”. The brokerage said it has moved to 'not rated' from 'underperform'.
“Still, positive and negative risks arise from user/merchant retention, revenue traction and cost-controls,” Jefferies said in a note, adding that it awaited clarity on two issues: RBI's stance on the transition method for VPA handling of Paytm users and outcome of investigation against the company.
Read more: Another blow for Paytm: Jefferies drops ratings amid challenges
"Without a banking license, Paytm's business model will now become similar to pure payment service providers like PhonePe, GPay, Pine Labs, etc. Paytm's focus will now move to ensure customer/merchant retention, and we believe it will dip into its ₹8,500 crore cash reserves for spending on retaining users. While app customers may be retained by increasing cashbacks/discounts (Rs400 crore in FY24E), merchants using PAYTM devices can be provided discounts (or free usage) on monthly subscription rentals ( ₹1,200 crore income in FY24E)," Jefferies added in the note.
What has RBI said on Paytm?
RBI extended Paytm account usage till March 15 owing to which merchants using Paytm QR/Soundbox linked to another bank account can continue beyond March 15.
