Paytm stock extend gains, advances near 10% after Vijay Shekhar Sharma meets RBI officials

Shares of parent company One97 Communication edged 43.35 points, or 9.61 per cent higher at 494.50, a day after surging nearly 10 per cent. RBI's decision resulted in the Vijay Shekhar Sharma led platform losing $2.5 billion off its market valuation.

In two days, the company's market capitalisation (mcap) eroded by Rs 17,378.41 crore to Rs 30,931.59 crore. (File Photo)

Staging a recovery after three-straight fall, shares of fintech platform Paytm extended its gain on Thursday (February 7) advancing nearly 10 per cent. Shares of parent company One97 Communication edged 43.35 points, or 9.61 per cent higher at 494.50, a day after surging nearly 10 per cent.

Paytm shares climbed as high as 496.25 rupees today after plunging nearly 42 per cent on Thursday, Friday and Monday trading sessions. The payment platform saw its share price fall 20 percent, 20 per cent and 10 per cent respectively after RBI’s Wednesday order barring fresh deposits and top-ups from March 1. Central bank’s decision led the Vijay Shekhar Sharma led platform to lose $2.5 billion off its market valuation.

RBI cited “persistent non-compliances and continued material supervisory concerns” as a reson behind its move.

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The surge in share prices comes at the backdrop of reports claiming Vijay Shekhar Sharma meeting RBI officials and Finance Minister Nirmala Sitharaman to explain his position and explain some relaxation.

Sharma has sought an extension of the February 29 deadline from the RBI apart from seeking clarity from the central bank regarding the transfer of its licence for the wallets business and digital highway toll payment service Fastag, the Reuters reported citing sources.

Paytm has assured its users for continuation of services post RBI deadline and is said to be roping in other banks for the same.