Paytm shares surge 8.5% to cross ₹400 in third consecutive day of gains

Shares of One 97 Communications, the parent entity of payments solution company Paytm, jumped 8.5% to cross ₹400-mark during the early trading hours on Monday, June 10.

This marked the third consecutive day of gain for Paytm, whose stock has been hammered for most part of the year so far due to the Reserve Bank of India's actions against its lending arm Paytm Payments Bank.

Paytm's shares peaked to a high of ₹414 apiece following the opening bell, which was up 8.6% from the last closing price.

The stock, however, pared more than half of the gains as the trading progressed. At 11:48 am, the shares were trading at ₹396.2, still up 3.9% as against the last closing price.

Paytm up 27% from all-time low

At the current market price, shares of Paytm are up 27% from the all-time low of ₹310 recorded last month.

The shares began sliding from February after the RBI barred Paytm Payments Bank from onboarding fresh customers and issuing credit, citing violation of norms. The restrictions came into effect in March. The stock reached its lowest in the second week of May.

Notably, Paytm reaffirmed its position as the third largest UPI payments service provider of India, behind market leaders PhonePe and Google Pay.

The Vijay Shekhar Sharma-led company accounted for ₹1.24 lakh crore-worth of the total UPI transactions in May 2024.

In the quarter ended March 2024, Paytm's net loss had widened to ₹550.5 crore, as compared to ₹167.5 crore in the year-ago period. The revenue from operations had declined 2.9% year-on-year to ₹2,267.1 crore.