Paytm AGM 2024: Shares in focus ahead of the event; stock jumps 30% in 1 month

The stock of the Vijay Shekhar Sharma-led company witnessed a brutal hammering in February this year after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from accepting new deposits from March 15 and ruled out any review of its action against the company. PPBL is an associate of One97 Communications Limited. 

The development led to the resignation of Vijay Shekhar Sharma as non-executive chairman of Paytm Payments Bank as the lender overhauled its board in the face of regulatory strictures.

The stock hit a 52-week low of ₹310 in May 2024. Since then, the stock has staged a commendable comeback. On Wednesday, shares of the company settled at ₹667 apiece on the BSE. 

In August, the company announced the sale of its entertainment ticketing business to food delivery company Zomato for ₹2,048 crore. Entertainment ticketing business, including movies, sports, and events, will be available on the Paytm app during a transition period of up to 12 months, it said.

"The deal, valued at ₹2,048 crore, underscores the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale," the company had said.

Paytm share price and Q1 FY25 results

In a one-month period, the stock has jumped 30%. 

The fintech firm said its loss widened to ₹840 crore in the quarter ended June 30, primarily due to the continued impact of restrictions on Paytm Payments Bank. 

The company had posted a loss of ₹358.4 crore in the same period a year ago, according to a regulatory filing by the company.

The consolidated revenue of Paytm declined 33.48% to ₹1,639.1 crore during the reported quarter from ₹2,464.2 crore in the same period a year ago.

"There were three factors that have led to this (decline in revenue and widening of loss), which are primarily disruptions on account of PPBL products like Wallet.

"We stopped using Wallet and some of the products," the spokesperson said.

The company also temporarily stopped some of the products on which regulators may have concern at an industry-level.