Paytm Shares Surge 10% on Investment Hope

New Delhi, Jul 26 (PTI) Shares of One 97 Communications Ltd, Paytm's parent entity, on Friday soared 10 per cent on hopes of receiving approval for its proposal of making a Rs 50 crore investment in its subsidiary Paytm Payment Services Ltd (PPSL).

The stock jumped 10 per cent to settle at Rs 508.85 -- its upper circuit limit -- on the BSE.

On the NSE, it surged 9.99 per cent to Rs 509.05 -- its upper circuit.

The inter-ministerial panel that oversees investments linked to China is yet to give its approval to Paytm's proposal to invest in its payment aggregator arm, a top government official said on Friday.

The proposal is still under consideration by the inter-ministerial panel and expected to take a call soon, Financial Services Secretary Vivek Joshi told PTI.

Crisis-hit Paytm has proposed making a Rs 50 crore investment in its 100 per cent subsidiary Paytm Payment Services Ltd.

One 97 Communications Ltd (OCL) has investments from China.

Therefore, the inter-ministerial panel comprising officials from foreign, home, finance and industries ministries, is looking into whether the investment proposal of One 97 Communications Ltd into PPSL is according to FDI guidelines or not.

Once the inter-ministerial panel approves it, Joshi said, Paytm can approach the RBI for a grant of payment aggregator licence.

Thereafter, the Reserve Bank of India will examine their proposal and take a call on providing a licence or not, he added.

Paytm Payments Services Ltd applied for a licence with the Reserve Bank in November 2020 to operate as a payment aggregator under the guidelines on Regulation of Payment Aggregators and Payment Gateways.