Shares of Paytm zoomed over 9 percent in morning deals on June 7. The sharp rise comes after the circuit filter for the stock has been revised upwards to 10 percent from 5 percent earlier.
To recall, the stock exchanges had lowered the circuit limit for Paytm shares after steep volatility was seen on the counter following the Reserve Bank of India's (RBI) restrictions on the Paytm Payments Bank.
Circuit limits are fixed by stock exchanges to curb excessive movement of the stocks on either side. The stock cannot fall below the lower limit or rise above the upper limit.
Paytm shares also rallied as the troubled fintech said it is seeing early signs of recovery and strong stabilisation for its Unified Payments Interface (UPI) business.
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The total value of UPI transactions processed on the Paytm grew to Rs 1.24 lakh crore in May, on the back of the company launching several initiatives for users such as Credit Card on UPI, as well as pushing the lever on UPI Lite. This is higher than Rs 1.22 crore reported in April.
With total transactions on the platform stabilising at 114 crore in May, Paytm, which became a Third-Party Application Provider (TPAP) in March, continues to be the third largest player in terms of market share.
Paytm has been positive on UPI and has formed partnerships with various banks and financial institutions including Axis Bank, HDFC Bank, State Bank of India (SBI), and YES Bank to enhance its UPI service.
Further, considering the breadth of its merchant base, Paytm continues to be leading amongst peer-to-merchant (P2M) UPI transactions.
Also Read | Paytm’s UPI market share continues to slide after RBI crackdown
Despite the growth in transactions, Paytm’s share of the unified payments interface (UPI) market in the country declined for a fourth straight month.
According to the data released by the National Payments Corporation of India, Paytm accounted for 8.1 percent of total UPI transactions in May this year, down from 13 percent in January 2024.
At 11:41 am, Paytm shares were trading 9.4 percent higher at Rs 379.45 apiece on the National Stock Exchange (NSE). The stock has gained 13 percent in the last one month. YTD, however, it is still down 41 percent.
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