Discover the latest surge in Paytm’s stock price as CEO Vijay Shekhar Sharma engages in discussions with regulatory bodies. Explore the market response, insights from meetings with the Finance Ministry, and analysts’ cautious advice amidst regulatory challenges.
CEO Vijay Shekhar Sharma’s Meetings with RBI and Finance Minister
Today, Paytm’s journey on the stock market took another twist as shares of its parent company, One 97 Communications, surged by as much as 9% to reach Rs 495.75 on the BSE. This increase came on the heels of meetings between Paytm CEO Vijay Shekhar Sharma and officials from both the RBI and Finance Minister Nirmala Sitharaman.
Market Response: Paytm Shares on a Roller-Coaster Ride
At 10:58 AM, One 97 Communications’ shares were trading at Rs 490.20, marking an increase of almost Rs 40 or 8.66%. This uptick comes after three days of consecutive declines, which led to a significant 42% drop in the stock price. However, there was a slight recovery yesterday with a 3% surge. The main factors driving investor sentiment continue to be concerns over regulatory issues and Paytm’s ability to address them.
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Request for Deadline Extension and Transition Plan
During the meeting with Finance Minister Sitharaman, Sharma discussed the company’s position regarding the RBI’s concerns. Sitharaman stressed the importance of dialogue between Paytm and the RBI to address the flagged non-compliance issues. Sharma also requested an extension of the February 29 deadline and presented a transition plan outlining efforts to meet regulatory compliance.
Analysts’ Caution: Long-Term Investor Advice
While some believe the stock may have hit its lowest point, analysts caution long-term investors against making rash decisions. They warn of potential downsides if UPI payments are halted after the February deadline.
A positive report from Bernstein, which gave Paytm an “outperforming” rating with a target price of 600, bolstered investor confidence. Bernstein analysts anticipate that Paytm will successfully navigate through regulatory challenges and implement necessary operational changes effectively, although they acknowledge the lingering impact on investor sentiment. They expect the regulatory damage to be limited to areas with high dependence on PPBL, such as wallets and anticipate the breakeven point for the company’s balance sheet to shift to FY 26.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and ET now have contributed to the above report