 "Paytm likely gets FDI nod for investment arm; share hits 10% upper circuit")
Paytm buzzing in trade: Shares of Paytm were locked in 10 per cent upper circuit at Rs 508.85 per share on Friday, July 26, 2024.
The uptick in the share price came after reports indicated that the Government has approved Paytm’s FDI proposal for payment aggregator business.
According to a Reuters report, One97 Communciations-owned Paytm got approval from the government for its Rs 50 crore ($5.97 million) investment in the subsidiary.
According to a Reuters report, One97 Communciations-owned Paytm got approval from the government for its Rs 50 crore ($5.97 million) investment in the subsidiary.
"The approval, which was stuck for months due to the company's link to China, will remove the main stumbling block to the unit, Paytm Payment Services, resuming normal business operations," the report said. READ ABOUT IT HERE
Financial performance
Paytm’s losses widened to Rs 840.1 crore in Q1FY25, from Rs 358.4 crore in the same quarter the previous year.
Revenue from operations fell to Rs 1,502 crore, marking a 36 per cent decrease from Rs 2,342 crore in the year-ago period. Total income also declined by 33.5 per cent, from Rs 2,464.2 crore to Rs 1,639.1 crore.
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Breaking down the revenue sources, the payments business contributed Rs 900 crore, financial services added Rs 280 crore, with the remaining revenue coming from marketing services. Compared to the previous quarter, the company's losses have increased from Rs 550.5 crore, while revenue from operations decreased by 33.7 per cent from Rs 2,267.1 crore. Total income saw a 33.5 per cent drop from Rs 2,398.8 crore.
Founded in 2010 by Vijay Shekhar Sharma under One97 Communications, Paytm is a among the leading financial technology company based in Noida, India.
The company offers a range of digital payment services and financial products, including QR code payments, Soundbox, Android-based payment terminals, and online payment gateways.
The market capitalisation of Paytm is Rs 32,376.81 crore, according to Bombay Stock Exchange (BSE).
The 52-week high of the stock is Rs 998.30 per share while its 52-week low is Rs 310 per share.
At 3:06 PM, shares continued to remain locked in the 10 per cent upper circuit. In comparison, BSE Sensex rose 1.51 per cent at 81,247.49 levels.