The shares of One 97 Communication, which is the holding company of digital payment service provider Paytm, shoot up more than 11 per cent on the BSE (Bombay Stock Exchange). The shares surged after the company disclosed that the NPCI has allowed to onboard new UPI users.
The stock went on to touch the day high level of Rs 769.90 per share on BSE (Bombay Stock Exchange) after hitting the opening bell at Rs 720.00 per share on the BSE (Bombay Stock Exchange).
The shares were currently trading around Rs 752.80 per share on BSE (Bombay Stock Exchange), with a substantial move of 9.67 per cent amounting to Rs 66.35 per share on the Indian bourses.
RBI's restricted Paytm from onboarding new users
Paytm Payments Bank Ltd (PPBL) was subject to restrictions earlier this year by the Reserve Bank of India (RBI) regarding the onboarding of new UPI users on the Paytm app.
On August 1, Vijay Shekhar Sharma, the founder and CEO of One 97 Communications, requested that the restrictions be lifted, and the NPCI recently granted their request.
Paytm Q2 FY25
A one-time exceptional gain of Rs 1,345 crore from the sale of its entertainment ticketing business helped Paytm parent One 97 Communications report a net profit of Rs 930 crore for the September quarter.
The company claimed that a 5 per cent QoQ increase in GMV, improved device realisation, and a 34 per cent QoQ increase in financial services revenues were the main drivers of its 11 per cent quarter-on-quarter (QoQ) revenue growth.
Q2 FY25 EBITDA
Due primarily to ongoing cost optimisation, lower ESOP costs, and a one-time gain from the sale of the entertainment business, Paytm reported a lower EBITDA (before ESOP) loss of Rs 1.8 billion compared to Rs 5.5 billion in the Q1 FY25. This resulted in the company's first-ever PAT delivery at Rs 9.3 billion.
