Paytm Share Price Rise: The share price of Paytm reached a nearly three-week high on Thursday with the rise in the stock market. This comes after the digital payments firm announced that it is aiming to be operationally profitable by September next year.
Paytm, backed by China’s Ant Group and Japan’s SoftBank Group Corp, raised $2.5 billion in India’s biggest initial public offering (IPO) last November, but its shares made a disappointing start in the stock market on widespread concerns over their high valuations. . The shares have lost over 70 per cent since the IPO price of Rs 2,150.
The share price of Paytm reached Rs 641.75 on Thursday. On Wednesday, the stock rose 4.3 percent to reach a nearly three-week high of Rs 635.4.
“We are encouraged by the pace of our business, the scale of monetization and operational leverage,” founder Vijay Shekhar Sharma said in a letter to shareholders.
“We expect this to continue, and I believe we should continue to conduct earnings before interest, taxes, depreciation and amortization (EBITDA) over the next six quarters,” Sharma said.
Sharma said that his stock grant will vest only when the market capitalization of the firm crosses the level of IPO on an ongoing basis.
Paytm Share Price History
Paytm’s shares were also barred last month by the central bank from adding customers to its payments bank, and ordered a comprehensive audit of its IT systems, citing “material” supervisory concerns.
On Wednesday, the company also said that its app’s monthly transacting users grew 41 percent year-on-year to 70.9 million during the quarter. It disbursed 6.5 million loans for a total value of Rs 35.53 billion ($470 million) during the quarter.