Shares of One 97 Communications Limited, the parent company of Paytm, recovered sharply from earlier losses to close almost flat on Monday, as markets reacted to the winding up of its associate entity, Paytm Payments Bank Limited (PPBL), after the Reserve Bank of India (RBI) revoked its banking license.
The stock closed at ₹1,132.05 on the National Stock Exchange, down 1.33 percent from the previous closing price of ₹1,147.35, recovering from an intraday low of ₹1,051.10. The stock opened at ₹1,084.95 and initially fell nearly 4 percent before buyers intervened, propelling it to a high of ₹1,144.75 during the session. Total traded volume reached 216.82 lakh shares, significantly higher than the morning’s tally, with a traded value of ₹2,387.87 crore, indicating robust trading activity. The low deliverable-to-traded quantity ratio of 21.74 percent suggests that the day’s movements were primarily influenced by intraday traders rather than long-term investors adjusting their positions.
Goldman Sachs, in a note published Monday, reaffirmed its Buy rating on Paytm shares with a revised price target of ₹1,400 for the next 12 months, which indicates a potential upside of around 24 percent from Monday’s close, although it has been reduced from an earlier target of ₹1,470. The brokerage highlighted that Paytm had already written off its entire investment in PPBL in early 2024 and does not currently derive any revenue from its operations. Goldman Sachs noted possible near-term impacts on brand perception and implications for Paytm’s application for a Prepaid Payment Instrument license, while recognizing the RBI’s recent approval of Paytm as a payment aggregator for both online and offline merchants as a positive development.
Jefferies expressed that Paytm’s business model is transitioning into a phase where efficiencies driven by scale are expected to enhance margins, supported by growth in both merchant payments and financial services.
Bernstein commented that the current developments could clear the path for Paytm to apply for a Non-Banking Financial Company (NBFC) or Prepaid Payment Instrument (PPI) license.
The stock’s recovery followed One 97 Communications’ announcement on Saturday that PPBL’s board and shareholders had approved resolutions for winding up, subsequent to the RBI’s cancellation of PPBL’s banking license effective April 24. The company assured stakeholders that PPBL had not contributed any revenue or net worth to the parent company in the last financial year and that all Paytm services—including Paytm UPI, Soundbox, QR, Money, and Payment Gateway—continue uninterrupted.
Despite the recovery, the stock remains down 11.91 percent year-to-date and is significantly below its 52-week high of ₹1,381.80, reached in December 2025. However, Monday’s price action offers some reassurance to investors concerned about a sharper decline.
