Paytm stock surged 3.14% on the NSE to mark its 52-week high of Rs 1,007 per share in early trade before paring gains to close the day at Rs 969.70, down 0.67%.
The stock has climbed 7.38% over the past five sessions.
The rally came on the heels of Paytm’s parent, One97 Communications, selling its Acquisition Rights in Japan-based PayPay Corporation to SoftBank Vision Fund 2 in a transaction worth Rs 2,364 crore.
To be sure, One97 Communications’ Singapore subsidiary approved the sale of 1,59,012 shares (7.2% stake on a fully diluted basis) in PayPay, acquired in exchange for services. The deal values PayPay at approximately Rs 32,000 crore and is set to close by December 2024.
In its regulatory filing, Paytm said the sale would generate net proceeds of ¥41.9 billion (Rs 2,364 crore).
A company spokesperson highlighted Paytm’s role in co-creating the mobile payments ecosystem in Japan, thanking SoftBank and the PayPay team while emphasizing Paytm’s shift toward AI-powered innovations to support PayPay’s growth vision.
As a leading fintech player in India, Paytm has spearheaded the adoption of digital payments and QR code-based transactions. The platform supports small businesses through services like digital payments, business loans, and advertising while offering consumers features like ticket booking and financial tools.
At the end of last month, global brokerage UBS increased its target price for Paytm from Rs 490 to Rs 1,000 per share and maintained a ‘neutral’ rating. Similarly, Bernstein raised its target price from ₹750 to Rs 1,000 per share, Mind reported.
In a separate note, UBS pointed out that Paytm’s next phase of growth will need to come from revenue expansion, as the benefits from cost optimization have already been fully realized.