Paytm’s stock price surges by 21% in four days: What’s driving this momentum, and what lies ahead?
Factors contributing to the increase in Paytm’s share price: These could be the reasons behind the surge.
Paytm Share Price
One 97 Communications, the parent company of Paytm, has seen its shares consistently hit upper circuit limits in recent trading sessions. Today marks the fourth consecutive day of a 5% rally, with the stock reaching the ₹395 per share upper circuit limit. Over the last four days, the stock has accrued a total gain of 21%. These factors may be contributing to the upward momentum in Paytm’s share price.
RBI’s deadline extension
The Reserve Bank of India (RBI) has extended the deadline for Paytm Payments Bank (PPBL) to complete deposits, credit transactions, or top-ups by an additional 15 days, until March 15th.
Paytm’s Axis Bank decision
In response to worries regarding potential interruptions in merchant payments, Paytm has revealed its decision to transfer its nodal account to Axis Bank. This move ensures that merchants can maintain digital payment acceptance via Paytm QR codes or card machines. Paytm clarified that after March 15, customers will no longer have the option to deposit funds into their Paytm Payments Bank accounts. However, they will still be able to utilize, withdraw, and transfer funds as usual, according to Paytm’s statement.
Paytm CEO’s message
Vijay Shekhar Sharma, the founder and CEO of Paytm, provided assurance that Paytm QR codes, Soundbox, and card systems will remain operational even after March 15.
Bernstein’s rating to Paytm
Bernstein issued an ‘outperform’ rating for Paytm, with a target price of ₹600 per share. The firm noted that RBI’s actions are specifically aimed at Paytm Payments Bank (PPBL) and will not affect other operations of Paytm. Meanwhile, global brokerage firm Jefferies has temporarily halted coverage of Paytm until there is greater stability.
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