Paytm shares surge nearly 13%; extend previous day's rally

New Delhi: Shares of fintech firm One97 Communications -- the owner of Paytm brand -- surged nearly 13 per cent on Friday, continuing to rally for the second day in a row.

Extending its previous day's rally, the stock jumped 12.15 per cent to settle at Rs 621.80 on the BSE. During the day, it zoomed 13.86 per cent to Rs 631.30.

On the NSE, it surged 12.69 per cent to Rs 624.90 apiece.

Shares of the fintech firm had 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 company will reapply for a payment aggregator (PA) licence, a regulatory filing said on Wednesday.

"...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.