Why Paytm Shares Bumped Up Sharply Late On Tuesday

Paytm‘s share price which was trading flat on Tuesday surged sharply in the afternoon going up over 2.5%.

What Happened: The huge bump today came after reports surfaced that the company has resumed its lending operations. As per a Moneycontrol report, the troubled fintech giant after a two-month-long pause has resumed services in partnership with SMFG India Credit (formerly Fullerton) and Shriram Finance.

The report also said that the company was in talks with Muthoot Finance, for both personal and merchant loans. Sources told Moneycontrol that the series resumed around March 21 and over 500 crore loans have been disbursed so far. The number includes top-ups from existing merchants and some new loans.

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Paytm’s share which went into a downward spiral after regulatory action from RBI, has managed to show some resilience in the past few weeks. Last month, the company managing to get a TPAP license was a positive trigger for the stock.

Brokerages have also shown some confidence in the stock and its ability to turn things around. Yes Securities upgraded the stock’s rating to buy, whereas Motilal Oswal maintained its “neutral” rating. Both the brokerages see an around 28% upside from the stock’s current market price of around ₹415.

Price Action: Paytm’s share price was up 2.40% to close at ₹415.80 on Tuesday.

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