Overview

• Paytm's shares surged over 11% following the NPCI's approval to onboard new UPI users, alleviating a major regulatory hurdle.
• The approval comes after the Reserve Bank of India had restricted Paytm due to compliance issues, causing a significant drop in its user base and stock value.
• With the new approval, analysts expect Paytm to rejuvenate its monthly transacting user numbers, which had fallen from 100 million to 70 million.
• Paytm reported a net profit of ₹930 crore for the September quarter, aided by a one-time gain from the sale of its entertainment ticketing business.
• Despite the recent gains, Paytm still faces challenges, including obtaining a payment aggregation license from the RBI.