Shares of One 97 Communications Ltd (Paytm) continued their winning run for the third straight session in Tuesday’s trade. The stock jumped 5 per cent to hit its upper circuit limit of Rs 376.45. The scrip has gained 15.74 per cent in three sessions.
The upward move in Paytm’s share price came after Reserve Bank of India (RBI) granted its banking arm (Paytm Payments Bank) more time to wind down operations and the fintech firm partnered with Axis Bank to keep some of its popular products running.
The Reserve Bank’s FAQs (frequently asked questions) brought some clarity over continuation of Paytm QR, Card machine and Soundbox services beyond the March 15.
The Reserve Bank’s FAQs (frequently asked questions) brought some clarity over continuation of Paytm QR, Card machine and Soundbox services beyond the March 15.
Paytm’s counter saw heavy selling pressure after RBI announced restrictions on Paytm Payments’ operations amid persistent non-compliances and continued material supervisory concerns.
Bourses BSE and NSE have put the securities of Paytm under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
That said, Morgan Stanley has assigned an ‘equalweight’ rating on the stock with a target of Rs 555. There was no change made to timeline for nodal accounts of Paytm and Paytm Payments Services with Paytm Payments Bank. Nodal accounts are to be terminated by February 29, with settlements can be completed by mid-March,” the foreign brokerage noted.
Bernstein suggested an ‘Outperform’ call on Paytm with a target of Rs 600. The brokerage said that RBI’s actions appear to be limited to Paytm Paytments Bank and not intended at disrupting the UPI payments and other functions of Paytm. “We find this to be incrementally positive though still short on the finer details,” it stated.
