Paytm share price spurts 5% as fintech firm gets regulator's nod for downstream investment into PPSL
Paytm share price gained in Thursdays session after the fintech firm received SEBIs clearance as a payment aggregator.
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Paytm share price gained in Thursdays session after the fintech firm received SEBIs clearance as a payment aggregator.
Shares of Paytm in Thursday's trade gained up to 5 per cent to day's high price of Rs 565 per share on the BSE. The stock price spurted after the company got approval from the Finance Ministry for downstream investment in subsidiary Paytm Payments Services.
At the time of writing the copy, Paytm shares were up by 1.5 per cent or Rs 8.5 at Rs 546.55 apiece.
We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the Company into PPSL, said the company's exchange fiiling.
With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners.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, added the release.
Global brokerages on Paytm
UBS has maintained its neutral call on the stock for a target of Rs 490, signifying downside of nearly 9 per cent. The brokerage mentions that this clearance removes one key overhang facing the company and it is sentimentally positive. The brokerage said this nod was necessary to get PA license as per RBI. Post grant of license by RBI, Paytm will be able to add new online merchants which was under embargo, it added.
Jefferies has also continued with its hold rating on the fintech company for a target of Rs 420. This suggests a downside of a sharp 22 per cent from the last close.
The brokerage said the new clearance will enable the company to reapply for PA license and if granted the company will be able to onboard new online merchants, which has been frozen since Nov-22.
Immediate business impact could be marginal, see diminishing regulatory concerns as a positive, added Jefferies.
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Written By: ZeeBiz WebTeam
Updated: Thu, Aug 29, 2024
02:24 PM IST
02:24 PM IST
ZeeBiz WebDesk
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