Paytm Shares Touched 52-Week High: Gained Over 2% Intraday

On December 17, 2024, Paytm shares captured investors’ attention as they surged another 2.5% on Tuesday and reached its 52-week high of ₹1,036. This followed a gain of over 2% on Monday, December 16, 2024, pushing the stock to its highest level in nearly 3 years. Since the start of the year, Paytm shares have risen by as much as 59%, positioning the company for its best year since going public.

The rebound in Paytm’s stock is particularly notable given the challenges it faced after the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank Ltd (PPBL). In January 2024, the RBI had barred PPBL from onboarding new UPI customers due to supervisory concerns.

However, after a 9-month ban, the company received approval from the National Payments Corporation of India (NPCI) in October to resume onboarding new UPI users, marking a significant positive development that is expected to drive the growth of its gross merchandise value (GMV).

Paytm Business Update

Recently, the company announced the sale of Stock Acquisition Rights held by One97 Communications Singapore Private Limited in PayPay Corporation, Japan. This sale is subject to the successful completion of all corporate approvals, transaction document execution, and customary closing conditions.

Paytm Singapore also revealed plans to sell its Stock Acquisition Rights in PayPay for net proceeds of JPY 41.9 billion (approximately ₹2,364 crore).

Paytm Q2 FY25 Financial Results

For Q2 FY25, Paytm reported an operating revenue of ₹1,660 crore, reflecting an 11% increase quarter-on-quarter. The company posted an EBITDA loss of ₹404 crore, an improvement of ₹388 crore from the previous quarter. Additionally, the company reported an EBITDA loss before ESOP of ₹186 crore, an improvement of ₹359 crore compared to the previous quarter. As of September 2024, Paytm held a cash balance of ₹9,999 crore, up from ₹8,108 crore at the end of June 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.