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  5. Paytm shares settle with over 15% gains as company shifts focus to consumer payments business

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Paytm shares settle with over 15% gains as company shifts focus to consumer payments business

Upstox
By Upstox News Desk

2 min read | Updated on October 08, 2024, 16:22 IST

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SUMMARY

The uptrend in Paytm shares comes a day after the company's CEO, Vijay Shekhar Sharma, said that the immediate priority of the fintech firm is to invest in its consumer payments business to recover its lost user base after regulatory actions by the Reserve Bank of India (RBI).

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PAYTM
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Paytm has gained 21% in the past month and surged 87.6% in the last six months.

Shares of One 97 Communications, Paytm's parent company, settled with more than 15% gains on Tuesday, October 8, marking the biggest single-day gain since February 8, 2023.

The stock settled 15.5% higher at ₹753 apiece on the National Stock Exchange (NSE). Its market capitalisation stands at ₹47,938.94 crore.

The scrip gained 15.6% to end at ₹753.6 per equity share on the BSE.

The stock has gained 21% in the past month and surged 87.6% in the last six months. Year-to-date, Paytm shares rose 17.8%.

Paytm shifts focus to consumer payments business

The uptrend in Paytm shares comes a day after the company's CEO, Vijay Shekhar Sharma, said that the immediate priority of the fintech firm is to invest in its consumer payments business to recover its lost user base after regulatory actions by the Reserve Bank of India (RBI).

The RBI had barred Paytm Payments Bank from taking deposits or facilitating credit transactions.

In August, Paytm sold its ticketing business to food aggregator Zomato in a ₹2,048 crore deal to fine-tune its focus on core operations of payments and financial services distribution.

Speaking at an event organised by the Calcutta Chapter of Young Indians, Sharma said, "Payments remain our primary business, and the merchant side continues to be strong. However, we lost a significant consumer base due to regulatory constraints. Moving forward, we aim to reinvest in the consumer payments business area."

The consumer payments business includes UPI payments, while the merchant business involves QR code transactions.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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