Paytm shares closed over 3% higher after receiving government approval for investment in Paytm Payments Services Ltd. The company will reapply for a payment aggregator (PA) license.
New Delhi, Aug 29 (PTI) Shares of fintech firm One97 Communications -- the owner of the Paytm brand -- ended over 3 per cent higher on Thursday after the company received the government's approval for downstream investment in wholly-owned subsidiary Paytm Payments Services Ltd.
The stock went up by 3.05 per cent to settle at Rs 554.45 on the BSE. During the day, it climbed 5 per cent to Rs 565.
At the NSE, it surged 3.15 per cent to Rs 555.
The company's market valuation climbed Rs 1,064.76 crore to Rs 35,284.34 crore.
In traded volume terms, 9.82 lakh shares of the firm were traded at the BSE and 91.75 lakh shares at the NSE during the day.
The company will reapply for a payment aggregator (PA) licence, a regulatory filing said on Wednesday.
"We would like to inform you that PPSL has received approval from the government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the company into PPSL.
"With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners," Paytm filing said.
The Reserve Bank of India (RBI) had rejected Paytm's PA licence permit application in November 2022 and instructed the company to reapply with Press Note 3 compliance under the foreign direct investment norms.
As per Press Note 3, the government had made its prior approval mandatory for investments from nations that share land borders with India.
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