ANI
28 Nov 2022, 15:07 GMT+10
New Delhi [India], November 28 (ANI): As the Reserve Bank of India (RBI) directed Paytm Payment Services Limited, a subsidiary of Paytm, to reapply for a payment aggregator license in 120 days, analysts have said that the move will not have any impact on Paytm and they believe the company will deliver robust growth.
"Since observations pertain primarily to submitting additional data, we do not expect any impact from this notice, and expect Paytm to continue business as usual and deliver high growth from its existing businesses," said Dolat Capital in a note.
Dolat Capital also gave a "Buy" rating for Paytm stocks with a target price of Rs 1,400. Currently, the shares are trading at Rs 467.
Further, brokerage firm Citi expects a "limited loss" of market share in online payments as a payment gateway business (can't onboard new customers but can continue to work with existing ones until a license is granted).
"In addition to the ongoing restrictions on onboarding new wallet customers (since Mar'22), the new developments show regulatory hiccups continue, although the latter restrictions on onboarding new wallet customers haven't impacted business significantly (Paytm has added 13mn monthly transacting users (MTU) FYTD," Citi said.
Citi too gave "Buy" rating with a share target price of Rs 1,055.
Multiple brokerages including the likes of Goldman Sachs, BofA, Citi, Morgan Stanley, JP Morgan and ICICI Securities remain confident about Paytm's future growth potential in view of its strong financial performance over the last few quarters across key segments.
Sharing an update on the payment aggregator license on November 26, 2022, Paytm said in an exchange filing that the RBI has asked its subsidiary to take some steps and then reapply for the license within 120 days.
The RBI has asked Paytm to seek necessary approval for past downward investment from the company into its subsidiary to comply with FDI guidelines, besides asking it not to onboard new online merchants.
Upon receiving communication from the central bank, Paytm said that this will have no material impact on its business and revenues since the communication from RBI is only related to the onboarding of new online merchants. Paytm has said that it is hopeful of receiving the necessary approvals in a timely manner and resubmitting the application.
"We can continue to onboard new offline merchants and offer them payment services including All-in-One QR, Soundbox, Card Machines, etc. Similarly, PPSL can continue to do business with existing online merchants, for whom the services will remain unaffected," Paytm had said. (ANI)Get a daily dose of Hong Kong Herald news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Hong Kong Herald.
More InformationNEW YORK CITY, New York: The U.S. must accelerate its efforts to develop fusion energy or risk losing its edge to China, Virginia Governor...
WASHINGTON, D.C.: In the past 20 years, China has become the world's top shipbuilder, producing more than half of all commercial ships....
BEIJING, China: China has announced new tariffs on Canadian agricultural and food products in retaliation for Canada's recent duties...
(250316) -- BEIJING, March 16, 2025 (Xinhua) -- Tourists take selfies among blossoms in Luancheng District of Shijiazhuang, north China's...
(250316) -- LIUZHOU, March 16, 2025 (Xinhua) -- This photo taken on Jan. 8, 2025 shows workers at the construction site of an expressway...
Participants compete during the 2025 Chongqing Marathon in southwest China's Chongqing Municipality, March 2, 2025. (Xinhua/Huang Wei)...
STOCKHOLM, Sweden: Spotify set a new milestone in 2024, paying out US$10 billion in royalties—the highest annual payout to the music...
NEW DELHI, India: Jaguar Land Rover (JLR) has decided against manufacturing electric vehicles at Tata Motors' upcoming $1 billion factory...
LONDON, U.K.: Virgin Group is seeking to raise $900 million to fund its plan to launch cross-channel rail services, positioning itself...
SEATTLE, Washington: Boeing saw a significant increase in aircraft deliveries in February, reporting 44 planes delivered compared to...
DALLAS, Texas: Southwest Airlines will start charging passengers for checked bags, ending a long-standing policy that set it apart...
NEW YORK, New York - U.S. stocks rallied hard on Friday, boosted by strong rises around the world. Investors shrugged off a decline...