Shares of One 97 Communications, the parent company of Paytm continued its upward trajectory on Wednesday with shares soaring over 11% to reach January levels.

What Happened: Paytm’s shares climbed 11.23% to touch ₹763.55 which was last seen on January 25th, before the Reserve Bank of India (RBI) imposed operational restrictions on Paytm Payments Bank.

The rise came on the back of its second quarter results where it reported a net profit of ₹930 crore, boosted by an exceptional gain of  ₹1,345 crore from its ticket business sale to Zomato. Besides, the company has also received an approval by the National Payments Corporation of India's (NPCI) to onboard new UPI users.

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On January 31, the RBI ordered Paytm to halt new deposits and credit transactions after February 29, 2024. It followed an earlier RBI directive, which prohibited the bank from adding new customers. The RBI’s decision was based on a Comprehensive System Audit report and follow-up reviews by external auditors.

These reports revealed ongoing non-compliance issues and significant supervisory concerns within the bank, prompting the need for additional regulatory action. The order led to Paytm’s shares prices plummeting.

Ever since then, the fintech giant’s stocks have lost over 9% as of Tuesday’s close. On May 9, the company hit a 52-week low of ₹310, since then the company’s stocks have recovered by 116%.

Price Action: Paytm’ shares were trading 10.71% higher at ₹760 on Wednesday afternoon.

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