Paytm Shares Cross Rs 1,950 Listing Price for First Time in 5 Years After RBI Wallet Approval

Shares of One 97 Communications, the parent company of Paytm, reclaimed their November 2021 listing price for the first time in nearly five years on Friday, November 13, after its subsidiary received in-principle approval from the Reserve Bank of India (RBI) to offer prepaid payment instruments, including digital wallets.

Paytm shares climbed to an Intraday high of Rs 1,960, surpassing their listing price of Rs 1,950 on November 18, 2021. The stock also crossed its listing-day intraday high of Rs 1,955. However, it pared most of its gains and closed at Rs 1,934, up 0.5 per cent, slipping below its historic listing price.

The stock has rallied 49.7 per cent so far in 2026, significantly outperforming the benchmark Nifty 50, which has declined 3.9 per cent during the same period. Paytm's market capitalisation stood at approximately Rs 1.24 lakh crore.

Paytm made its stock market debut on November 18, 2021, at Rs 1,950 per share, at a discount of approximately 9.3 per cent to its initial public offering (IPO) issue price of Rs 2,150. The stock touched an intraday high of Rs 1,955 on its listing day but subsequently declined and remained below its debut price until Friday. Despite crossing the listing price intraday, the shares remain approximately 10 per cent below their IPO issue price.

The latest regulatory development came after Paytm Payments Services Ltd (PPSL), a subsidiary of One 97 Communications, received in-principle approval from the RBI to operate as a prepaid payment instrument (PPI) issuer. The approval paves the way for PPSL to offer prepaid payment instruments, including digital wallets, subject to applicable regulatory requirements and the conditions attached to the approval.

The development could help Paytm expand its digital payments offerings and strengthen customer engagement. Goldman Sachs had previously identified the potential relaunch of Paytm's wallet business as an additional earnings opportunity.

The regulatory approval follows the company's strong second-quarter results for FY27, which prompted several global brokerages to maintain bullish ratings on the stock. Paytm reported a net profit of Rs 226 crore in Q2 FY27, compared with Rs 21 crore in the corresponding quarter last year. Revenue increased 28.5 per cent year-on-year to Rs 2,648 crore, while EBITDA surged 91.5 per cent to Rs 270 crore. The operating margin improved to 10.2 per cent from 6.8 per cent.

Another potential earnings catalyst for Paytm is the proposed introduction of merchant discount rates (MDR) on UPI transactions. The company expects this measure to improve its overall payment processing margin by approximately 2.5 basis points, with the impact expected to stabilise within two to three quarters of implementation.

Disclaimer: The article is for informational purposes only and not investment advice.