Shares of One97 Communication, the parent firm of Paytm, rose 5% to touch the upper circuit of Rs 449.50 from the previous close of Rs 428.10. However, the shares came off the highs to Rs 427.90.
The surge in the company’s share came after Vijay Shekhar Sharma stepped down from the position of Chairman. “OCL (One97 Communication Limited) withdraws its nominee from the Paytm Payments Bank Board and Vijay Shekhar Sharma steps down as Part-Time non-executive Chairman and Board member; PPBL’s future business to be led by a reconstituted Board,” the company said in an exchange filing on February 26.
The broking firm Morgan Stanley in a research report said that if NPCI approves the company’s third-party application provider application, “this will enable a seamless transition and continued UPI services for Paytm customers. We await NPCI’s response as well as further updates from
Paytm on the potential impact to businesses in Feb-24.”
However, Macquarie took a different stance and gave an “Underperform” rating with a target price of Rs 275 per equity share. The brokerage in its research report further said that they don’t expect RBI to authorise any related party transaction between Paytm and Paytm Payments Bank.
In the last five days, the shares of the company rose 10.70% but have fallen nearly 51% in the past six months. The stock has wiped off 31% of investors wealth in the last one year and 72% in the past five years.
To compare, the benchmark index Nifty 50 has given no returns in the last five days and 15% in the last six months. The stock has risen 28% in the last one year and 104% in the past five years.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
