Paytm crisis: Following Vijay Shekhar Sharma’s meeting with FM, shares of One 97 Communications rise by 9% RBI’s Nirmala Sitharaman

Paytm’s current share price: The parent company of Paytm, One 97 Communications, continued its wild ride today as its shares jumped up to 9% to Rs 495.75 on the BSE. This rise came about as a result of conversations between Finance Minister Nirmala Sitharaman and RBI officials, as well as firm CEO Vijay Shekhar Sharma.

One 97 Communications’ shares were up over Rs 40, or 8.66%, at Rs 490.20 as of 10:58 AM.
Paytm’s shares experienced a rise today despite concerns of possible investigations into money-laundering and KYC issues. The shares closed yesterday’s trading session 3% higher, after three days of nonstop declines that culminated in a 42% collapse. As per an ET article, the primary factor propelling Paytm’s shares at the moment is investor optimism concerning regulatory difficulties and the company’s capacity to tackle them.
According to reports, Sharma spoke with the Finance Minister about the company’s position on the RBI’s worries. In order to resolve the identified non-compliances, Sitharaman underlined the need of communication between Paytm and the RBI.
During the RBI meeting, Sharma also requested an extension of the deadline of February 29 and gave a transition plan that detailed his efforts to comply with regulations.
Although some experts believe the stock may have bottomed out, they advise long-term investors not to make hasty judgments. They alert us to possible negative effects should UPI payments stop after February 28.
“Acting when you know there is going to be regulatory action is speculative, and I believe there are better possibilities in the market. Thus, until more information is available, I would steer clear. According to Gurmeet Chadha of Complete Circle Consultants, “It (Paytm) is at an all-time low but in these things you do not know what the bottom is, especially when it comes to regulatory action.”
Investor confidence increased after a favourable report from Bernstein that rated Paytm as an outperformer with a target price of Rs 600. Bernstein analysts recognize the long-term impact on investor sentiment, but they anticipate Paytm to successfully negotiate regulatory difficulties and carry out essential operational adjustments. They expect the breakeven point for the company’s balance sheet to move to FY26 and think that the regulatory harm would be restricted to sectors like wallets that rely heavily on PPBL.