Shares of Paytm’s parent company One97 Communications rose another 5% on Thursday. That too when the company dismissed news of deal talks between Paytm CEO Vijay Shekhar Sharma and Adani Group Chairman Gautam Adani. Let us tell you that it has decreased by 56 percent in the last six months.
Investors showed confidence in Paytm stock and it continued to rise today after gaining 5% on Wednesday. This is the second consecutive session in which Paytm’s shares have touched the upper circuit of 5 percent. It has jumped more than 10 percent in the last 5 days. Paytm’s share price has halved in the last six months. Its 52-week high price is Rs. 998.30 and a lower Rs. 310 is.
Paytm said in a regulatory filing on Wednesday, “We would like to clarify that this news is speculation and the company is not involved in any discussions in this regard. We have always complied with our provisions under SEBI (Listing Obligations and Disclosure Requirements) Regulations. , 2015.” “We have made and will continue to make disclosures in compliance with our obligations.”
Contents
Adani was reported to have bought the stake.
In fact, media reports say that Paytm is in trouble after the RBI barred Paytm Payments Bank Limited from March 15 from accepting deposits, credit transactions or top-ups to any customer’s account, wallet and Fastag. Adani is also trying to convince West Asian funds to invest in Paytm during these tough times.
Warning of job cuts
Let us tell you that the business disruption in the fourth quarter may have a near-term financial impact on Paytm’s revenue and profitability. Paytm indirectly warned of job cuts, saying it is optimizing its cost structure. It is leveraging AI capabilities and focusing on core business to achieve significant cost efficiencies.
Wait and see for Paytm
Let us tell you that Paytm shares have fallen by around 57% in the last six months and investors are hopeful that the company will turn net profit positive by FY29 itself. Analysts say the biggest challenge for Paytm is the RBI ban. Siddharth Khemka of Motilal Oswal said, “So I think if there is a change in management and payments banks can get approval from RBI to come back into business, that will be a big trigger for the stock and it has a neutral rating. We wait for Paytm. And we’re in watch mode.”