There was no official information on the block deal at the time of filing the story. The news was reported by CNBC-TV18.
The stock witnessed significant investor interest as 1.55 crore shares were trading on the NSE around 2 pm with the traded value of Rs 1,091.48 crore.
The counter has bounced back strongly after hitting a low of Rs 310 in May this year while it is still 27% below its 52-week high of Rs 998. In the last one month, the stock has gained 36%.
Paytm shares are currently trading above their 50-day and 200-day simple moving averages (SMA) of Rs 563 and Rs 491, respectively.
With an easing regulatory stance on the One 97 Communications, domestic brokerage firm Emkay Global recently upgraded the stock to ‘add’ from a previously ‘reduce’ stance, while also hiking the target price to Rs 750 from an earlier Rs 350.“We upgrade Paytm to ADD, while elevating our DCF-based TP to Rs750/share (earlier Rs375), implying 3.6x/3x FY26E/27E EV/Operating revenue, as the easing regulatory stance should pave the way for approvals from NPCI/RBI to onboard new users/online merchants soon and, thus, drive business turnaround. This, coupled with strong cost optimization measures, should put Paytm on an early path to profitability,” said Emkay Global in its report.Paytm has largely protected its merchant base (settled at 41 million) and transitioned its user base (78million, down in 1QFY25 from 100mn) to new partner banks, which should now pave the way for the long-pending NPCI approval to onboard new users. The recent FIPB approval should also make provision for securing the long-pending payment aggregator licence from the RBI and thus protect its online merchant business.
“Paytm is the type of stock that you may love it, hate it, but you cannot ignore it. And it is always in the news,” expert Dipan Mehta, Director at Elixir Equities had told ET Now.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
