Paytm shares hit 52-week high after RBI gives preliminary wallet authorisation
The parent company One 97 Communications saw its stock reach a record Rs 1,960 following the regulatory development.
Paytm's payment services arm received preliminary authorisation from the Reserve Bank of India (RBI) on Friday to issue prepaid payment instruments, such as wallets, according to The Times of India.
Following this news, shares of the parent company, One 97 Communications, rose to a record high of Rs 1,960. This follows a rally on Thursday when shares closed at Rs 1,925, marking the first time the stock crossed Rs 1,900 since its 2021 listing.
The company may also benefit from a proposed merchant discount rate (MDR) framework for Unified Payments Interface (UPI) transactions. The National Payments Corporation of India (NPCI) deferred the proposed levy, which involves a 40 basis points MDR on person-to-merchant UPI transactions above Rs 2,000, until after Diwali.
Analysts estimate that UPI MDR revenue could reach up to Rs 1,160 crore for the company in FY28. In September, the global brokerage Bernstein named Paytm its top pick, maintaining an Outperform rating and a target price of Rs 2,200.
Bernstein projected that the company's revenue will grow at a compound annual growth rate of 24 per cent between FY26 and FY30, citing improvements in operating leverage and merchant lending growth.