Shares of India’s Paytm rose a inventory exchange-allowed most of 5% on Friday, March 15, 2024, a day after it obtained a third-party utility supplier license that may permit it to supply digital payments after its banking unit ceases operations.
The license, granted by the nation’s payments authority, got here as Paytm Payments Bank will stop to function on March 15, following regulatory motion attributable to non-compliance with sure norms.
Paytm’s shares have been up 5% at 370.70 rupees early within the session, set for its finest day in two weeks, with its buying and selling quantity of over 4 million shares already making it the inventory’s fourth busiest day this month.
Still, the inventory has simply over halved in worth since late January when the Reserve Bank of India ordered Paytm Payments Bank to cease accepting recent deposits in its accounts or in style wallets.
The third-party app supplier license, brokerage UBS mentioned in a word, means Paytm will function like its opponents such as Google Pay and PhonePe, probably shifting investor focus to operational efficiency over regulatory headwinds.
However, Jefferies mentioned that for Paytm to retain prospects and retailers, it must dip into its money reserves of 85 billion rupees ($1.02 billion).
