The popular Indian digital payments company, Paytm, has received various positive mentions in the news lately. Their stocks have surged 5% due to approval from the Indian government for investment, as well as the successful sale of their ticketing business to Zomato. However, the company also faced challenges as their shares declined after a Sebi warning and plunged 4% amid a show-cause notice. The company also received government approval for investments and reapplied for a license, while capping their board member remuneration at Rs 48 lakh. In other related news, the shares of TV18 and Network18 saw a soar in value after their merger was approved.
Paytm's parent company, One97 Communications Ltd, saw a surge in its share prices after selling its movie and events ticketing business to Zomato for a whopping ₹2,048 crore. However, Paytm's overall financials have been impacted, with a significant loss in the last quarter. Despite this, brokerage firms are optimistic about the company's future prospects and have even raised their price target for the stock. The acquisition will allow Zomato to expand its presence in the 'going-out' segment, while Paytm focuses on its core financial services.
A leading brokerage, Jefferies, has taken the decision to move Paytm-operator One97 Communications Ltd to 'not rated' due to the recent regulatory actions by the Reserve Bank of India. This shift is expected to cause a significant decline in the company's revenue and may result in cash burns in the future. The company's focus will now be on retaining customers and merchants through the use of its cash reserves. Paytm's nodal account has also been shifted to Axis Bank Ltd which is expected to have a positive impact on the business.
In a major blow to the embattled fintech giant Paytm, a global broking firm has downgraded its stock rating to "underperform" and slashed its price target by more than half. This downgrade comes in the wake of the Reserve Bank of India's regulatory action against Paytm's associated banking arm and highlights the company's struggle with customer exodus and its impact on monetization and business model. Paytm's stock has been under pressure for the past few weeks, and this fresh downgrade is expected to further worsen its financial standing.
Paytm, India's leading digital payment platform, saw its share price drop by 20% for the second consecutive day after the RBI imposed restrictions on its lending business. Brokerages have downgraded Paytm and lowered their target prices, citing concerns about the impact on its lending operations.
The Reserve Bank of India has imposed significant operational restrictions on Paytm's parent company, resulting in a 20% drop in its share price. These restrictions include a ban on new deposits and credit transactions, following an earlier directive to stop adding new customers. Trading of One 97 Communications Ltd, the company behind Paytm, was also suspended after a significant drop in its share price.