Paytm Stock Soars Amid Investment Approval Hopes

Shares of Paytm's parent company, One 97 Communications Ltd, surged 10% as investors anticipated approval for a Rs 50 crore investment in its subsidiary, Paytm Payment Services Ltd. The proposal, pending review by an inter-ministerial panel overseeing China-linked investments, may soon be deliberated, enabling Paytm to seek an RBI payment aggregator licence.

Shares of One 97 Communications Ltd, Paytm's parent entity, soared 10 per cent on Friday amid hopes of approval for its Rs 50 crore investment proposal in subsidiary Paytm Payment Services Ltd (PPSL).

The stock surged to its upper circuit limit, closing at Rs 508.85 on the BSE and Rs 509.05 on the NSE.

A top government official indicated that the inter-ministerial panel, tasked with evaluating China-linked investments, is still considering the proposal and is expected to make a decision soon.

Paytm's proposed Rs 50 crore investment into its fully-owned subsidiary, PPSL, has drawn attention due to the parent company's Chinese investments.

The inter-ministerial panel, including officials from the ministries of foreign affairs, home, finance, and industries, is scrutinizing whether the proposal aligns with FDI guidelines.

Upon approval, Paytm will be able to approach the RBI for a payment aggregator licence, a move that will further be evaluated by the Reserve Bank of India before any licence is granted.

Paytm Payments Services Ltd initially sought a licence to operate as a payment aggregator in November 2020 under the RBI's guidelines on Regulation of Payment Aggregators and Payment Gateways.

(With inputs from agencies.)