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HomeNewsPaytm shares jump after reports CEO met RBI, FM

Paytm shares jump after reports CEO met RBI, FM

Paytm share price today

: The roller-coaster journey of

One 97 Communications

, the parent company of Paytm, continued as its shares surged up to 9% to reach Rs 495.75 on the BSE. This increase followed meetings between company CEO

Vijay Shekhar Sharma

and officials from the


and Finance Minister

Nirmala Sitharaman

At 10:58 AM, shares of One 97 Communications were trading at Rs 490.20, up almost Rs 40 or 8.66%.

Despite reports of potential probes into money-laundering and KYC violations, Paytm’s stock saw an upturn today. After experiencing three days of continuous decline, resulting in a 42% crash, the shares ended 3% higher yesterday. Currently, investor sentiment regarding regulatory issues and Paytm’s ability to address them remains the main driving force behind its shares, according to an ET report.
During the meeting with the Finance Minister, Sharma reportedly discussed the company’s stance on RBI’s concerns. Sitharaman emphasized the need for dialogue between Paytm and the RBI to address the flagged non-compliances.

Sharma also sought an extension of the February 29 deadline and presented a transition plan during the RBI meeting, outlining efforts to meet regulatory compliances.
While some speculate that the stock may have bottomed out, analysts caution long-term investors against hasty decisions. They warn of potential downsides if UPI payments cease after February-end.
“I think there are better opportunities in the market and acting when you know there is regulatory action impending is speculation. So I would avoid till more clarity comes. It (Paytm) is at an all-time low but in these things you do not know what the bottom is, especially when it comes to regulatory action, Gurmeet Chadha of Complete Circle Consultants was quoted as saying.

Following a positive report from Bernstein, which gave Paytm an outperform rating with a target price of Rs 600, investor confidence received a boost. Bernstein analysts expect Paytm to navigate regulatory challenges and execute necessary operational changes effectively, although they acknowledge the lasting impact on investor sentiment. They believe the regulatory damage will be limited to areas with high dependence on PPBL, like wallets, and anticipate the breakeven point for the company’s balance sheet to shift to FY26.

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