Shares of One 97 Communications Ltd (Paytm) climbed 5 per cent in Thursday’s trade, as it received approval for downstream investment in a wholly-owned subsidiary Paytm Payments Services (PPSL). Paytm also showed intension to reapply for a payment aggregator (PA) licence. Analysts see diminishing regulatory concerns as positive for Paytm.
“We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the company into PPSL. With this approval in place, PPSL will proceed to resubmit its PA application,” Paytm said.
Paytm shares climbed 5 per cent to hit a high of Rs 565 on BSE. It was later trading 1.38 per cent higher at Rs 545.50.
Paytm said PPSL will continue to provide online payment aggregation services to existing partners. “We remain committed to a compliance-first approach and upholding the highest regulatory standards. As a homegrown Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem,” it said.
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