Why Paytm Share Price Is Rocketing 9% Today

Paytm‘s share price jumped back in the green strong on Thursday going up over 9% to hit an intraday high of ₹439.

What Happened: One97 Communications, the parent company of Paytm, has shifted its strategy following the acceptance of Paytm General Insurance Limited’s withdrawal of its application for registration as a “General Insurance Company” by the Insurance Regulatory and Development Authority of India (IRDAI).

Paytm General Insurance Limited sought this withdrawal to focus more on distributing insurance products from other insurers rather than providing insurance services of their own.

See Also: Tata Consumer Shares Down Today, But Analysts Remain Bullish

In a statement, Paytm clarified that the withdrawal aligns with its strategy to intensify efforts in insurance distribution across various segments such as health, life, motor, shop and gadgets. This initiative will be facilitated through its wholly-owned subsidiary, Paytm Insurance Broking Private Ltd (PIBL).

Moving forward, Paytm intends to innovate by emphasizing small-ticket insurance products aimed at both consumers and merchants. The company plans to collaborate with partners to enhance its offerings in the general insurance sector. Leveraging Paytm’s extensive distribution network, the goal is to increase insurance penetration among a broader audience.

Earlier today, the company also announced partnering with Samsung. Samsung has introduced flight, bus, movie, and event ticket bookings on Samsung Wallet. This launch is in partnership with Paytm. The collaboration aims to enhance consumer convenience by providing a seamless and integrated booking experience directly through Samsung Wallet, enabling access to a wide range of services via Paytm.

Price Action: Paytm’s share price was up 7.25% to trade at ₹431.70 as the markets opened on Thursday.

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