Paytm share price soars; is there a Bharti Airtel connection?
Paytm share price today: Paytm shares rose and Bharti Airtel shares fell on Monday. According to a Bloomberg report, Bharti Airtels billionaire Chairman, Sunil Bharti Mittal, is seeking a stake in Paytm as he aims to fold his payments bank, Airtel Payments Bank, into Paytm Payments Bank.
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.
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