Paytm stock surges 5% to upper circuit today: Possibility of full recovery?

PTC News Desk: On Tuesday Paytm shares witnessed a 5 per cent surge, hitting the upper circuit. The positive movement follows reassurances from Paytm founder and CEO, Vijay Shekhar Sharma, regarding the continued functionality of its QR code and soundbox facilities.

Amid concerns over the Reserve Bank of India's (RBI) deadline set for March 15, Sharma affirmed that Paytm's QR code and soundbox services will persist beyond the specified date. This announcement provided a boost to investor confidence, resulting in the uptick in Paytm's share price. Despite recent volatility and regulatory challenges, Paytm's shares remained resilient, buoyed by Sharma's commitment to sustaining key operational services. Investors are closely monitoring Paytm's trajectory, pondering whether the recent uptick signals a potential full recovery for the company's stock.

Paytm CEO Vijay Shekhar Sharma's statement:

"Paytm QR, soundbox, and EDC (card machine) will maintain uninterrupted functionality, even beyond March 15. The recent RBI FAQ, specifically point #21, unequivocally clarifies this. Do not be swayed by rumors or deterred from championing Digital India," he communicated via X (formerly Twitter).

Also Read: Supreme Court to review Chandigarh poll ballot papers amid tampering concerns

Also Read: Kisan Andolan 2.0 | Farmer leaders reject Centre’s proposal over MSP, what will be farmers’ next move?

Today's performance of Paytm shares:

On the National Stock Exchange (NSE), Paytm shares reached the upper circuit at Rs 376. Year-to-date, the stock has experienced a significant decline of 41 per cent. In the preceding session, Paytm registered a 5 per cent gain, marking the second consecutive session where the stock hit the upper circuit.

Jefferies India's statement regarding Paytm:

Jefferies India has suspended its rating on Paytm until the "news flow settles down." The brokerage has transitioned from 'underperform' to 'not rated'. "However, both positive and negative risks persist concerning user/merchant retention, revenue generation, and cost management," Jefferies remarked in a statement. They highlighted the need for clarity on two key issues: RBI's approach to the transition method for VPA handling of Paytm users and the outcome of the investigation into the company.

Also Read: Chandigarh mayoral elections: Chief Justice grills Chandigarh officer, a first in independent India

Also Read: Punjab Weather | Orange alert for rain issued in these districts of Punjab, check here

(Inputs from agencies)

-

Join Whatsapp Channel