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Business News/ Markets / Stock Markets/  Paytm shares jump 5%, hit upper-circuit for second consecutive day; here's why
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Paytm shares jump 5%, hit upper-circuit for second consecutive day; here's why

Paytm shares have been declining since the Reserve Bank of India imposed restrictions on its banking division. The central bank has prohibited Paytm Payments Bank from onboarding new customers and issuing credit from March onwards.

Paytm's share price rallied over 5 per cent on Thursday.Premium
Paytm's share price rallied over 5 per cent on Thursday.

Shares of fintech major Paytm surged by 5 per cent for the second consecutive trading session on May 30. The stock experienced a significant rally following reports that billionaire Gautam Adani is contemplating acquiring a stake in Paytm's parent company, One97 Communications. The stock finally closed at 377.40 per share on Thursday.

However, Paytm later clarified that the report was purely speculative. "We hereby clarify that the above mentioned news item is speculative and the company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the company said in a statement.

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Meanwhile, Adani Group also issued a clarification, as quoted by media reports. “Categorically deny this baseless speculation, it is totally false and untrue," it said.

The denials followed a Times of India (TOI) report asserting that Paytm founder and CEO Vijay Shekhar Sharma had met Adani Group Chairman Gautam Adani in Ahmedabad. The two business leaders discussed "finalising the contours of a deal", the daily reported, citing unnamed sources.

The news came after the Financial Times, a global business daily, reported that the Adani Group was planning to enter India's fintech sector. This move would position the ports-to-power conglomerate as a direct competitor to Alphabet's Google Pay, Walmart's PhonePe, and Reliance Industries' Jio Financials.

According to the TOI report, the potential purchase of a stake in Paytm would be one of the Adani Group's major acquisitions, following its previous acquisitions of Ambuja Cement and New Delhi Television Ltd (NDTV).

Also read: BJP-led NDA likely to win Lok Sabha election 2024, says Phillip Capital, recommends over 50 stocks to buy

Notably, Paytm shares have been declining since the Reserve Bank of India (RBI) imposed restrictions on its banking division. From March onwards, the RBI has prohibited Paytm Payments Bank Ltd (PPBL) from onboarding new customers and issuing credit.

Year to date, Paytm's stock has dropped by 41 per cent, and over the past 12 months, it has fallen by 46 per cent.

 

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Published: 30 May 2024, 05:19 PM IST
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