One97 Communications Shares Soar Amid Government Approval for Downstream Investment

Shares of fintech firm One97 Communications, owner of Paytm, surged nearly 13% on Friday following government approval for a downstream investment in its subsidiary, Paytm Payments Services Ltd. The company plans to reapply for a payment aggregator license after receiving the approval.

Shares of fintech powerhouse One97 Communications, the parent company of Paytm, soared nearly 13 percent on Friday, continuing a two-day rally. The stock closed at Rs 621.80 on the BSE, marking a 12.15 percent rise, and peaked at Rs 631.30 during intraday trading.

On the National Stock Exchange (NSE), it surged 12.69 percent to reach Rs 624.90 per share. This uptick follows a more than 3 percent gain on Thursday, catalyzed by the government's approval of downstream investment into the firm's wholly-owned subsidiary, Paytm Payments Services Ltd (PPSL).

The Reserve Bank of India had previously rejected Paytm's application for a payment aggregator license, citing non-compliance with foreign direct investment norms. With the recent government go-ahead, Paytm plans to reapply and continue providing online payment aggregation services in the interim period.

(With inputs from agencies.)