Paytm shares rise nearly 5% as digital payment firm intensifies its focus on insurance distribution
One97 Communications said in a statement, As Indias leading financial services distribution platform focusing on growing its insurance distribution business, Paytm General Insurance Ltd (PGIL), an associate entity of One97 Communications, will be moving its focus away from the capital-intensive insurance manufacturing business and withdrawing its general insurance license application. This will also enable OCL to conserve cash of INR 950 crores, which was earmarked for investment in PGIL.
Paytm Share Price: The stock of One97 Communications, the parent company of Paytm, rose by nearly five per cent on BSE on Monday (May 27, 2024) after the fintech firm said that it had intensified its focus on insurance distribution to Paytm consumers and small merchants and SMEs.
The Paytm stock that closed at Rs 340.95 in the previous session soared by 4.99 per cent to jump to Monday's high of Rs 357.95 after starting the session at Rs 341.80.
Paytm shares closed the trading session higher by 4.58 per cent, or Rs 15.60, at Rs 356.55 each on Monday.
In a statement on Saturday, One97 Communications said that the company aimed to offer small ticket, innovative insurance solutions across various general insurance categories, including health, life, motor, shop, and gadgets.
One97 Communications said in a statement, "As India’s leading financial services distribution platform focusing on growing its insurance distribution business, Paytm General Insurance Ltd (PGIL), an associate entity of One97 Communications, will be moving its focus away from the capital-intensive insurance manufacturing business and withdrawing its general insurance license application. This will also enable OCL to conserve cash of INR 950 crores, which was earmarked for investment in PGIL.
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