Paytm shares gain momentum, zoom 13% to cross ₹600-mark first time since February

The scrip peaked to an intraday high of ₹629 apiece on the National Stock Exchange (NSE) in the final hour of trading. This marked a gain of 13.4% as against the last closing price.

On the BSE, Paytm surged to an intraday high of ₹630 per share, up 13.6% as compared to the preceding session's close.

This is the first time since February when the company's stock has crossed the ₹600-mark.

The rally in Paytm's stock was not linked to any regulatory filing made by the company. However, the climb came on a day when Prime Minister Narendra Modi, while addressing the Global Fintech Fest in Mumbai, lauded fintech companies for technologies such as soundbox and QR code payments.

Paytm, while sharing the portion of Modi's speech on X (formerly Twitter), wrote, "We are humbled by the opportunity our country has given us to pioneer QR code payments, along with our innovative Soundbox and card machines. These technologies have built trust in mobile payments across every nook and corner of our nation among customers and merchant partners, and have set global benchmarks."

Paytm's last regulatory filing was on Wednesday, August 28, in which it informed the bourses about receiving the government's nod for "downstream investment" in its wholly-owned subsidiary Paytm Payments Services Limited (PPSL).

"We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the Company into PPSL," the filing stated.

The announcement had led to a rally in Paytm's stock in the subsequent trading session on Thursday, April 29, with the shares rising by 5% in the first hour of trading.

Paytm eyes PA licence

Paytm, whose lending arm -- Paytm Payments Bank Ltd (PPBL) -- faced a regulatory crackdown earlier this year, is now seeking a payments aggregator (PA) licence from the government.

With the approval for downstream investment in place, "PPSL will proceed to resubmit its PA application", Paytm informed the exchanges on August 28.

In the meantime, PPSL will continue to provide online payment aggregation services to existing partners, it added.

Paytm further noted that it is "committed to a compliance-first approach" and upholding the highest regulatory standards. "As a homegrown Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem," the company stated.

Stock still down YTD

Paytm has gained momentum in recent period, with the stock rising by 24.5% in August. A bulk of these gains pertain to the past one week, as the stock has risen by 10.39% in the last five trading sessions.

However, shares of the fintech player continue to edge lower year-to-date. The scrip is down by 3.03% in 2024 so far.

Notably, Paytm's stock was hammered on the bourses in February, following the regulatory action on its banking arm.