Latest news with #PPSL
Mint
15 hours ago
- Business
- Mint
Paytm share price ends 13 of last 15 months in green, soars 270% as investor sentiment strengthens
Once battered after its IPO, One 97 Communications, the parent company of Paytm, has staged a dramatic turnaround, consistently delivering strong monthly performances that have brought relief to early investors and doubled the money for those who entered the stock in the second half of last year. The company's improved financial performance, driven by a sharper focus on its core business, cost-cutting measures, and the closure of non-core segments such as ticketing, has been well received by the Street. Regulatory advancements have also removed key overhangs that had previously weighed on the stock. These positive developments have also prompted analysts to raise their outlook, marking Paytm's biggest rebound since its listing in November 2021. After plunging to an all-time low of ₹ 310 apiece in May 2024, the stock staged a strong recovery in the subsequent months and has managed to sustain that momentum to date, gaining 270%. Over the last 15 months, Paytm shares have ended 13 months in the green, including a nearly 18% jump in July, despite broader market weakness. In the previous session, the stock also touched its highest level since January 2022. Amid its sharp focus on its core business has led Paytm to report operating profit earlier than projected as in the June quarter, it reported its first-ever operationally driven quarterly net profit since listing, at ₹ 123 crore, on revenue of ₹ 1,917 crore. The performance was driven by an increase in the number of subscription merchants, higher GMV, and growth in revenues from the distribution of financial services. The Reserve Bank of India (RBI), earlier this week, has granted in-principle approval to Paytm Payments Services Ltd. (PPSL), a wholly-owned subsidiary of Paytm, to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. The approval marks a significant regulatory milestone for the company and lifts the ban on onboarding new merchants, which had been in place since November 2022, when PPSL's earlier application was rejected. Domestic brokerage firm JM Financial expects this to have a 5% benefit to Paytm's FY27E EBITDA and noted that it could also be a major sentimental trigger, as the approval is likely a precursor to further regulatory clearances for Paytm. Importantly, the approval comes soon after Ant Financial's complete exit from Paytm in a clean-out trade, with the sale of its residual 5.84% stake, effectively removing Chinese shareholding from the company's ownership structure. Since the RBI disruption in January 2024, parts of the investor community have been apprehensive about investing in Paytm, anticipating further regulatory turbulence. With this approval, it becomes a clear signal that the RBI is likely satisfied with the actions taken by Paytm in terms of compliance as well as changes in shareholding, the brokerage said. Amid improving growth prospects, mutual funds have further increased their stake in the company during the June quarter, taking their cumulative holdings to an all-time high. As of June 2025, 33 mutual funds collectively held a 13.86% stake in Paytm, equivalent to 8.84 crore shares. This marks a notable rise from the 13.11% stake held at the end of the preceding March quarter, according to Trendlyne's shareholding data. Some of the key mutual funds that raised their stakes in the new-age stock include Motilal Oswal Mutual Fund, which now holds a 2.61% stake in the company. Bandhan Mutual Fund entered the stock by acquiring a 1.02% stake, while Nippon Mutual Fund holds a 2.55% stake and Mirae Asset Mutual Fund has a 3.20% ownership. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Business Standard
2 days ago
- Business
- Business Standard
Paytm jumps after RBI grants nod for payment aggregator licence
One 97 Communications surged 4.70% to Rs 1,172.60 after its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), received in-principle authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. The RBI's approval, communicated via a letter dated 12 August 2025, allows PPSL to resume onboarding merchants, a process that had been restricted since November 2022. The move lifts prior regulatory hurdles and enables the subsidiary to continue its payment aggregation business, subject to ongoing compliance with RBI's Guidelines on Regulation of Payment Aggregators and Payment Gateways. Paytm noted that this approval is conditional, with full authorisation contingent on adherence to regulatory norms issued in March 2020 and subsequent updates. The company also highlighted that any future changes in control or transfer of activities would require prior RBI approval. Paytm is India's leading mobile payments and financial services distribution company. The company reported a consolidated net profit of Rs 122.5 crore, reversing a net loss of Rs 544.6 crore in Q1 FY25. Revenue from operations rose 27.7% YoY to Rs 1,917.5 crore, driven by growth in subscription merchants, higher GMV (Gross Merchandise Value), and increased revenue from financial services distribution.
Time of India
2 days ago
- Business
- Time of India
‘In-principle' authorisation: Paytm gets RBI nod to operate as online payment aggregator ending onboarding freeze; shares hit 52-week high with 5% surge
Paytm shares surge after RBI authorisation NEW DELHI: Paytm Payments Services has secured approval from the Reserve Bank of India to function as an online payment aggregator, according to a regulatory filing by its parent organisation One 97 Communications on Tuesday. This approval lifts the restrictions placed on Paytm Payments Services Limited (PPSL) regarding new merchant onboarding, which had been in effect since November 25, 2022. "Paytm Payments Services Limited (PPSL), a wholly-owned subsidiary of One 97 Communications Limited (OCL or the Company), for a Payment Aggregator (PA) licence. We would like to inform you that Reserve Bank of India ("RBI") has granted 'in-principle' authorisation to PPSL vide its August 12, 2025, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007," the filing stated, as quoted by news agency PTI. The organisation submitted its application for the permit in March 2020, but approval was delayed due to compliance matters concerning Foreign Direct Investment in the company. This authorisation arrives shortly after Chinese enterprise Alibaba group divested its complete shareholding in One97 Communications. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3 Lakh+ Have Transformed Their Smile Toothsi by MakeO Book Now Approval subject to conditions RBI's nod directed that PPSL must comply with the Guidelines on Regulation of Payment Aggregators and Payment Gateways, including clarifications issued on March 31, 2021, to maintain its authorisation, as reported by Economic Times. The authorisation specifically encompasses PA operations as outlined in the guidelines. Any transactions beyond this scope, including merchant 'pay-outs', must be processed through separate channels, not through the designated PA escrow accounts. The central bank has also mandated PPSL to conduct a thorough System Audit, incorporating cybersecurity assessment. This audit must be performed by qualified professionals, either CERT-In empanelled auditors, Certified Information Systems Auditors (CISA), or DISA-certified experts. The assessment scope needs to include verification of compliance with the Master Direction on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, alongside RBI's guidelines on 'Storage of Payment System Data'. RBI stipulateed that PPSL must submit the audit findings within six months from the letter date. Failure to meet this deadline will result in automatic cancellation of the in-principle authorisation. Furthermore, the financial firm must seek prior approval for any modifications in its shareholding or ownership structure. Shares reflect positive sentiment In the trading session following the RBI nod, One 97 Communications' shares surged 4.8% to reach a fresh 52-week peak of Rs 1,173.70 on BSE on Wednesday. The previous day, Paytm's stock had concluded marginally lower at Rs 1,119.95 on the BSE. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
India Today
2 days ago
- Business
- India Today
Explained: Why Paytm shares surged over 5% today
Paytm shares jumped as much as 6% in early trade on Wednesday after its fully-owned arm, Paytm Payments Services Ltd (PPSL), received the Reserve Bank of India's (RBI) 'in-principle' approval to operate as an online payment aggregator under the Payment and Settlement Systems Act, move lifted investor confidence, pushing Paytm's stock to a high of Rs 1,187 on the Bombay Stock Exchange (BSE).advertisementThe RBI also lifted merchant onboarding restrictions on PPSL that had been in place since November 2022, effective immediately. However, the authorisation is strictly limited to online payment aggregator operations as defined under RBI's guidelines, with certain transactions, such as merchant payouts, barred from routing through the designated escrow account. To ensure robust risk management and cybersecurity, RBI has mandated a comprehensive system and cybersecurity audit by a CERT-In empanelled auditor, a Certified Information Systems Auditor (CISA), or a DISA-qualified professional from audit must comply with RBI's Master Direction on Cyber Resilience and Digital Payment Security Controls, as well as the circular on payment data storage. The audit report is to be submitted within six months, failing which the approval will lapse PPSL must seek prior RBI approval for any changes in its shareholding or ownership structure, underscoring ongoing regulatory the business side, Paytm reported steady June-quarter results, with revenue matching estimates and profits strengthening thanks to tight cost controls. The company also saw better-than-expected gross merchandise value (GMV) recovery, while monthly transacting users held steady, signaling stable operational momentum.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
Mint
2 days ago
- Business
- Mint
Paytm share price rallies 5% after RBI gives nod to operate as online payment aggregator. Should you buy?
One 97 Communications, the parent firm of Paytm, share price surged 5.27 per cent to ₹ 1,183.60 on the NSE in Wednesday's trading session after the Reserve Bank of India (RBI) granted in-principle approval to its wholly owned unit, Paytm Payments Services Ltd (PPSL), to function as an online payment aggregator. Paytm share price has remained largely positive in the near-term. The stock has given multibagger returns in last one year by surging over 132 per cent. In the short-term, Paytm stock has gained 20 per cent in a month and nearly 55 per cent in six month. The RBI, in its communication, clarified that the approval granted to PPSL is conditional on its compliance with the Guidelines on Regulation of Payment Aggregators and Payment Gateways and the related clarifications issued on March 31, 2021. The authorisation applies solely to PA activities as defined in these guidelines, and transactions beyond this scope — such as merchant 'pay-outs' — cannot be processed through escrow accounts meant for PA operations. Additionally, the central bank has instructed PPSL to carry out a thorough system audit, including a cybersecurity audit, to be conducted by a CERT-In empanelled auditor or a qualified professional holding CISA or DISA certification. The audit must also cover adherence to the Master Direction on Cyber Resilience and Digital Payment Security Controls for non-bank Payment System Operators, as well as compliance with the RBI's circular on the Storage of Payment System Data. The audit report must be sent to the RBI within six months from the date of the letter; otherwise, the in-principle authorisation will automatically expire. Furthermore, PPSL has been instructed to obtain prior approval for any changes in its shareholding or ownership. Brokerage firm JM Financial, while reiterating 'buy' tag with target price of ₹ 1,300, said that this could be a big sentimental trigger as the approval likely becomes a precursor to further regulatory clearances for Paytm. ' The approval marks a significant regulatory milestone for the company and also lifts the ban on on-boarding new merchants, which had been in place since Nov'22 when PPSL's earlier application was rejected. As highlighted in our earlier note on regulatory triggers, we expected this to have c.5% benefit to Paytm's FY27E EBITDA. We value Paytm at 40x Jun'27 Adj. EBITDA of INR 18.5bn to reach Jun'26 TP of INR 1,320, implying 17.9% upside at CMP. Moreover, there still remains the optionality of further regulatory triggers such as UPI monetisation and Paytm wallet that could each result in c.25-30% rise in our EBITDA estimates,' it said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
