Paytm Shares Surge Following Government Approval for Downstream Investment

Shares of fintech firm One97 Communications, the owner of Paytm, rose over 3% after receiving government approval for downstream investment in subsidiary Paytm Payments Services Ltd. The stock settled at Rs 554.45 on the BSE and Rs 555 on the NSE. The company plans to reapply for a payment aggregator licence.

Shares of One97 Communications, the fintech firm that owns the Paytm brand, saw a significant rise of over 3% on Thursday. This came after the company secured government approval for downstream investment into its wholly-owned subsidiary, Paytm Payments Services Ltd (PPSL).

On the BSE, the stock surged by 3.05% to close at Rs 554.45, reaching an intraday high of 5% at Rs 565. Similarly, it climbed 3.15% to settle at Rs 555 on the NSE. The company's market valuation increased by Rs 1,064.76 crore, bringing it to Rs 35,284.34 crore.

A total of 9.82 lakh shares were traded on the BSE, while 91.75 lakh shares changed hands on the NSE. According to a regulatory filing, Paytm Payments Services Ltd will resubmit its application for a payment aggregator (PA) licence, following the approval. Despite a prior rejection by the Reserve Bank of India in November 2022, PPSL is set to continue providing online payment aggregation services.

(With inputs from agencies.)