June 7, 2024, Noida: Shares of Paytm-parent One97 Communications soared by 10% on Friday, hitting ₹381.20 and reaching the upper circuit. This significant rise came as the circuit filter for Paytm’s stock was revised from 5% to 10%, reflecting increased investor confidence.
Revised Circuit Filter Propels Growth
The adjustment of the circuit filter to 10% allowed Paytm’s stock to experience substantial growth, reaching its upper limit. This move, aimed at accommodating greater price movement, has drawn considerable attention from investors.
Market Capitalisation Peaks
With the stock hitting its upper circuit, One97 Communications’ market capitalisation surged to ₹24,236 crore, according to Bombay Stock Exchange (BSE) data. This milestone underscores the market’s optimistic response to Paytm’s strategic changes.
Strategic Shifts Post RBI Action
The surge in Paytm’s share price follows reports of the company revising its business strategy in response to recent actions by the Reserve Bank of India (RBI) concerning Paytm Payments Bank. Although the details of the strategy shift are yet to be disclosed, it is believed to involve significant operational and financial restructuring aimed at enhancing efficiency and profitability.
Key Developments and Expert Insights
The rise in Paytm’s shares also follows a crucial meeting between Paytm CEO Vijay Shekhar Sharma and key officials, including Finance Minister Nirmala Sitharaman and RBI representatives. This meeting addressed restrictions placed on Paytm Payments Bank, boosting investor confidence.
“The upward revision of the circuit filter and Paytm’s proactive approach to business strategy revision indicate a strong commitment to overcoming regulatory challenges,” said financial analyst Rajesh Mehta. “This positive signal is likely to sustain investor interest and support the company’s growth trajectory.”
Paytm’s recent stock performance highlights the market’s confidence in its strategic direction. With a revised circuit filter and increased market capitalisation, Paytm is poised for further growth. For more updates and in-depth analysis, visit therisingnews.com.