Paytm shares rise 2% after subsidiary gets RBI's final approval to operate as payment aggregator

Paytm share price

The shares of Paytm-parent One 97 Communications jumped around 2 percent in the early trading hours of November 27 after the company announced that its subsidiary has received Reserve Bank of India's (RBI) final approval for Payment Aggregator license.

The shares of the company were trading at Rs 1,309.1 apiece in the morning trading hours of Thursday.

RBI grants final approval for PPSL to operate as payment aggregator:

In an exchange filing released in the post markets hours of November 26, Paytm announced that RBI granted the Certificate of Authorization (COA) to the firm's wholly-owned subsidiary Paytm Payments Services Limited (PPSL) to operate as a payment aggregator under the Payment and Settlement Systems Act, 2007.

The certificate will allow PPSL to resume onboarding merchants — a process that had been under RBI freeze since November 2022. According to the filing, the license will enable PPSL to continue offering payment aggregation services, and growth in this business segment will reflect in the consolidated financials of One 97 Communications Limited.

The company also attached the RBI's formal Certificate of Authorisation, issued by the Department of Payment and Settlement Systems, stating that PPSL has been permitted to operate as a payment aggregator with effect from November 26.

The RBI release signed by Chief General Manager-In-Charge Gunveer Singh added that a sum of Rs 10,000 plus GST has been deposited as authorization fee with the central bank.

ICICI Securities hikes target price:

Earlier yesterday, Paytm shares had jumped nearly 4 percent after ICICI Securities hiked target price for the stock, while maintaining its 'Buy' rating. This came after a three-session losing streak.

ICICI Securities hiked its target price for Paytm shares to Rs 1,450 apiece from Rs 1,240 apiece. The latest target price implies an upside potential of nearly 17 percent from the stock’s closing price of November 25.

The domestic brokerage said that it sees strong earnings growth potential driven by payment and loan distribution expansion, margin improvement through product upgrades and better UPI mix. "Paytm's plans for traction in postpaid, wallet and international segment complemented by its diverse presence across the payment ecosystem could support a net revenue of Rs 12,523 crore by FY28," said ICICI Securities.

Paytm share price history:

Despite today's gains, Paytm shares have fallen more than 0.5 percent in the past one month. The stock has however rallied around 50 percent in the past six months, and is up over 30 percent in 2025 so far.

After hitting a 52-week low of Rs 651.50 on March 11 this year, the stock jumped a whopping 108 percent in less than eight months to hit a 52-week high of Rs 1,353.80 apiece on November 10. The stock has fallen more than 3 percent since then.

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