Paytm share price gains over 8.5% crossing ₹400 mark after 8 weeks

Paytm stock has gained 33.54% from its all-time low of ₹310 which was touched in the second week of May.

Shares of One 97 Communications- Paytm's parent company- extended their gaining streak for the third consecutive day. The company's shares surged 8.60% in morning trade and crossed the ₹400 mark for the first time in 8 weeks to reach ₹414. With this the stock has gained 33.54% from its all-time low of ₹310 which was touched in the second week of May. On Friday, the company's shares hit the 10% upper circuit limit after a 2% gain in the previous session.

Paytm share price: A QR code for the Paytm digital payment system at a store in Mumbai, India.(Bloomberg)

This comes after Paytm recently said it is seeing early signs of recovery and strong stabilization in its Unified Payments Interface (UPI) business. In May, the total value of UPI transactions processed on Paytm platform grew to ₹1.24 trillion.

Paytm has formed partnerships with various banks and financial institutions, including Axis Bank, HDFC Bank, State Bank of India (SBI) and YES Bank.

The company's stock fell after the Reserve Bank of India (RBI) prohibited Paytm Payments Bank Limited (PPBL) from accepting deposits, credit transactions, or top-ups in any customer accounts, wallets, and FASTags from March 15.

Following this, Paytm released its quarterly results in which the company's loss widened to ₹550 crore owing to RBI's ban compared to a loss of ₹167.5 crore in the same period the previous year. Additionally, Paytm's revenue from operations declined by 2.8 percent to ₹2,267.1 crore in the reported quarter, down from ₹2,464.6 crore in the corresponding quarter of FY23.