Paytm (NSE:PAYTM, BOM:543396), operated by One97 Communications, is approaching its IPO price of 2,150 Indian rupees after a 54% rally this quarter, as improving profitability and the prospect of higher UPI-related revenue boost investor confidence, Bloomberg reported Wednesday.
The shares rose over 7% on Wednesday after analysts said a new 0.4% fee on UPI payments above 2,000 rupees to merchants could benefit Paytm, Bloomberg noted. Citigroup estimates the fee could generate about 3 billion rupees in revenue from Paytm's UPI app and up to 7 billion rupees from its merchant-acquiring business.
Jefferies and JM Financial raised their price targets to 2,150 rupees, while Investec Securities and Emkay Global Financial Services raised theirs to 2,300 rupees and 2,400 rupees, respectively, according to the report.
Paytm shares opened at 1,829.35 rupees on Wednesday and reached 1,856.50. They were trading at 1,780.35 rupees, up nearly 3%, at 1:30 p.m. India time, according to BSE data.
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