Shares of Paytm rose 9% to intraday high on Tuesday as the stock gained more than 100% since its lows in May.

What Happened: Paytm's stock has stagged a turnaround of fortunes, gaining almost 30% in the previous month. The company recently got approval from the finance ministry for downstream investment into Paytm Payments Service.

The move removes some of the regulatory overhang over the company, the analysts said.

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The company also sold its ticketing entertainment segment to Zomato for ₹2,048 crore. The move allows Paytm to focus more on its primary business of payments and financial services. 

Paytm's stock had plunged to a 52 week low of ₹310 on May 9. The stock was under pressure after the Reserve Bank of India restricted Paytm Payments Bank to take fresh deposits and credit transactions. This also stopped Paytm's FASTag business which was provided by the Payments Bank. 

The decision took a toll on the company's financials as its net loss widened to ₹549.60 crore in the March quarter and ₹838.9 crore in the June quarter. 

Price Action: Shares of Paytm rose 9.51% to intraday high of ₹687.40 on Tuesday. 

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