Paytm share price soars; is there a Bharti Airtel connection?

Paytm share price today: The stock of digital payments firm Paytm's parent, One97 Communications, jumped on Monday, after a report by news agency Bloomberg suggested Bharti Airtel's billionaire Chairman, Sunil Bharti Mittal, may pick a stake in Paytm.

Paytm shares gained by Rs 32.1 or 5.1 per cent to Rs 655.3 apiece on BSE at the strongest level of the day so far. On the other hand, Bharti Airtel shares climbed down by Rs 13.6 or 1.8 per cent to Rs 743.6 apiece. 

Paytm share price rises: Latest news  

Mittal is seeking a stake in Paytm by merging his financial services unit, Airtel Payments Bank, into Paytm Payments Bank, Bloomberg reported quoting people with knowledge of the matter.

According to the report, billionaire Jack Ma's ANT Group may trim its stake in Paytm, as the China-based group needs to sell shares in the Indian company after its stake hit a threshold.  

Paytm told Zee Business that there are no talks about a stake sale at the company, refusing to comment on the report.      

The digital payments company also said its entire focus remains on organic growth. 

Editor's Take: What Anil Singhvi recommends on Paytm 

Zee Business Managing Editor Anil Singhvi recommends a wait-and-watch approach on Paytm shares. "The stock is not meant for day trading, which is why we don't have a 'buy' or 'sell' rating on it," he said.

Singhvi suggests existing investors to hold the stock. 

What Macquarie says on Paytm

Macquarie maintained an 'outpeform' rating on Paytm with a target price of Rs 800. The brokerage pointed out that no such deal can materialise only after the RBI lifts its restrictions on the Paytm payments back. 

An acquisition which results in onboarding of new customers for the Paytm payments bank will not be allowed, according to Macquarie. 

Paytm share buyback news

This month, One97 Communications completed a buyback of shares worth Rs 849.8 crore at an average price of Rs 545.9 per share. One97 bought shares in the price range of Rs 702.7-480.3 apiece under the buyback, according to a regulatory filing.

Paytm share price: History

Paytm shares have staged intermittent spikes but failed to revisit the price range of the company's IPO in November 2021. 

At the strongest level of the day on February 27, Paytm shares changed hands at Rs 655.3 apiece on BSE, coming within Rs 190 of their 52-week high of Rs 844.4, hit in August 2022. Yet, the stock quoted at a discount of almost 70 per cent to the upper end of its IPO price range.  

Paytm results

Earlier this month, Paytm reported a quarterly net loss of Rs 392 crore for the quarter ended December 2022. The digital payments company had registered a net loss of Rs 778.4 crore for the corresponding period a year ago. 

Paytm Founder and CEO Vijay Shekhar Sharma said the company the "milestone of EBITDA before ESOP cost profitability in the December 2022 quarter itself". The company had guide for achieving the target by September 2023.

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