Paytm hits upper-circuit for second consecutive session, stock trading at 389.20 – Times of India

by The Technical Blogs


NEW DELHI: Share of One97 Communications, parent company of Paytm, hit upper circuit for second consecutive session on Monday. The stock surged 18.50 or 4.99% to 389.20 with a total increase of 11% in two sessions after it received approval from the National Payments Corporation of India (NPCI) join UPI as a third-party application provider under the multi-bank model.
Morgan Stanley maintained its Equal Weight stance with a target price of Rs 555, viewing this development positively and in line with expectations. The impact on Paytm’s business in February and the shift of Paytm Payment Bank’s business to other banks are areas of interest for the firm.
Four banks, including Axis Bank, HDFC Bank, State Bank of India, and YES Bank, will serve as Payment System Provider banks to One 97 Communications. YES Bank will also function as a merchant acquiring bank for UPI merchants, with ‘@Paytm’ handle being redirected to YES Bank as per a company filing on Thursday.
This move ensures continuity in UPI transactions and AutoPay mandates for existing users and merchants.
NPCI has advised Paytm to swiftly migrate all existing handles and mandates to the new PSP banks. The TPAP approval marks the resolution of the final regulatory challenge for a seamless transition of customers and merchants, as highlighted by Jefferies.
The brokerage noted that Paytm’s business model is expected to resemble that of pure payment service providers like PhonePe and Google Pay due to potential loss of banking license, leading to closer collaborations with banks and regulated entities.


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