Paytm surges 13% on heavy volumes; stock zooms 101% from May low | News on Markets
Paytm share price today: Shares of One97 Communications, which owns the fintech company Paytm, hit an over six-month high of Rs 623.80 on the BSE on Friday, August 30. The multi-month high was hit as Paytm shares rallied 13 per cent in the intraday trade amid heavy volumes.
The stock of the fintech company has doubled, zooming 101 per cent, from its 52-week low of Rs 310, touched on May 9, 2024. Paytm share price trading at its highest level since January 31, 2024.
At 02:46 PM, Paytm share price was trading 12 per cent higher at Rs 621.50 as compared to 0.31 per cent rise in the BSE Sensex. The average trading volume on the counter nearly doubled as roughly 32 million equity shares had changed hands on the NSE and BSE, together, till the time of writing of this report. In the past two trading days, the stock has surged 16 per cent on the BSE.
Operationally, Paytm Payment Services Limited (PPSL), a wholly owned subsidiary of One97 Communications, said that it has received foreign direct investment (FDI) approval and will resubmit its payment aggregator (PA) licence application.
In a stock exchange filing, the company said, “We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, for downstream investment from the company into PPSL. With this approval in place, PPSL will proceed to resubmit its PA application,” Paytm said on Wednesday.
In the meantime, PPSL will continue to provide online payment aggregation services to existing partners, it said.
“We remain committed to a compliance-first approach and upholding the highest regulatory standards. As a homegrown Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem,” it said.
Separately, Paytm has sold its entertainment ticketing business to food delivery platform Zomato for Rs 2,048 crore.
“This deal reinforces our commitment to payments and financial services distribution. In the recent quarters, we have expanded into insurance, equity broking, and wealth distribution, which offer significant opportunities to cross-sell these services and strengthen our position as a leading financial services distribution player,” Paytm had said in an exchange filing.
The transaction will generate substantial profits for Paytm with the cash proceeds further bolstering our balance sheet for future growth, it added.
The rapid rise of fintech in India
According to Paytm’s Annual Report for financial year 2023-24 (FY24), India’s payments landscape has benefitted from multiple developments over the past few years, be it innovations in mobile payments and digital infrastructure, continued regulatory support, or government initiatives to push for increased consumer and merchant acceptance.
Given the increasing shift towards a cashless economy and user preference for transacting via their mobile phones, mobile payments continue to scale rapidly. This is further boosted by the growth of digital commerce and services. As a result, digital transactions in India surpassed Rs 3.2 trillion in FY23 and are expected to touch Rs 4 trillion by FY26.
“The Indian Digital Lending market is expected to grow to $515 billion by 2030, growing at a 2021- 30 CAGR of 33 per cent. The Indian WealthTech market will grow to $237 billion by 2030 on the back of a growing base of retail investors, with the InsuranceTech market expected to reach $88 billion by 2030 driven by untapped opportunities and innovative models,” Paytm said in its FY24 annual report.
With support from the regulator, NPCI and Bank partners, Paytm said, it has successfully transitioned the services provided by PPBL to other partner banks which enable it to continue serving its customers and merchants uninterrupted.
“We believe this transition will further de-risk our business model and will open up more long-term monetisation opportunities with the partner banks, leveraging our strong customer and merchant engagement on the platform,” Paytm said.
First Published: Aug 30 2024 | 3:16 PM IST
Post Comment