One 97 Communications Limited (Paytm) witnessed a 5% surge in its shares during Monday’s trading session following its announcement of a partnership with Axis Bank for the continuation of merchant settlements. Investors reacted positively to this development, driving the stock to hit the upper circuit limit.
The Reserve Bank of India’s FAQs provided further clarity on the continuation of Paytm’s QR, Card machine, and Soundbox services beyond March 15, contributing to the positive sentiment surrounding the stock.
At 9:38 pm, Paytm shares were trading at ₹358.35, representing a 5% increase. Upon the opening bell, the stock immediately reached its upper price band at Rs 358.55 on BSE, resulting in a market capitalization of Rs 22,773.21 crore.
This marks the second consecutive session where Paytm shares hit their upper circuit limits. While Bernstein recommended an outperform rating on the stock with a target price of Rs 550, Citi maintained its sell call on the stock despite suggesting a target price of Rs 550, citing potential positive impacts from new partnerships on the business.
In a filing to BSE, Paytm disclosed that the partnership with Axis Bank aimed to replace the nodal account previously used with Paytm Payments Bank. Paytm Payment Services, a wholly-owned subsidiary of Paytm, has been utilizing Axis Bank services since its inception.
