In a morning trading frenzy on June 7, shares of Paytm skyrocketed over 10%. This sharp surge follows the revision of the circuit filter for the stock, which has been raised to 10% from the previous 5%.
Previously, stock exchanges had reduced the circuit limit for Paytm shares amidst significant volatility on the counter, spurred by the Reserve Bank of India’s (RBI) restrictions on the Paytm Payments Bank.
As of 12:13 pm, Paytm shares were trading at a 10% upper circuit, reaching ₹381.30 on the NSE.
Circuit limits are implemented by stock exchanges to mitigate excessive stock movement, preventing it from falling below the lower limit or rising above the upper limit.
The rally in Paytm shares was further fueled by the fintech’s announcement of early signs of recovery and robust stabilization in its Unified Payments Interface (UPI) business.
Despite facing challenges, Paytm witnessed a surge in the total value of UPI transactions, reaching Rs 1.24 lakh crore in May, propelled by various user initiatives and the introduction of Credit Card on UPI. This marks a notable increase from Rs 1.22 crore reported in April.
Remaining steadfast as the third-largest player in the UPI market share, Paytm continues its strategic partnerships with leading banks like Axis Bank, HDFC Bank, SBI, and YES Bank to bolster its UPI services.
Moreover, with its extensive merchant network, Paytm maintains its dominance in peer-to-merchant (P2M) UPI transactions despite a decline in its overall UPI market share for the fourth consecutive month.
