Paytm shares rose nearly 3 percent on Tuesday after the company’s investment platform, Paytm Money, announced a sharp cut in interest rates and a revision in brokerage charges for its Margin Trading Facility (MTF). The move has sparked fresh optimism among investors, raising the question — can Paytm stage a comeback with these strategic changes?
Price Movement
During Tuesday’s trading session, share price of One 97 Communications Ltd (OCL) reached an intraday high of Rs.902.40 per share, up 2.8 percent from the previous close of Rs.878.15 per share. The shares have retreated since then and currently trading at Rs.892.85 apiece. Over the past year, the stock has delivered returns exceeding 130 percent.
What happened
Paytm shares are in focus on Tuesday after its investment platform, Paytm Money, a wholly owned subsidiary of One 97 Communications, announced significant revisions to its Margin Trading Facility (MTF), also known as Pay Later. The platform introduced a new slab-based interest rate model, with rates starting at 9.75 percent per annum, considerably lower than the earlier flat rate of 14.99 percent.
This industry-leading rate will be applicable to both retail investors and high-value traders with a funding book size exceeding Rs.25 lakh. Meanwhile, investors with book sizes ranging between Rs.1 lakh and Rs.25 lakh will continue to be charged at 14.99 percent per annum. Alongside this, Paytm Money has also revised its brokerage charges to 0.1 percent per trade, aiming to make trading more accessible and economical.
According to the company, these updates have been designed to address concerns related to cost-efficiency, affordability, and transparency in trading. By incentivizing higher participation from experienced traders and lowering the entry barrier for retail investors, Paytm Money is positioning itself as a competitive player in the online broking space.
Earnings Report
According to its recent financial updates, One97 Communications Limited reported remarkable consolidated revenue of Rs.1,828 crores in Q3 FY25, marking a 57 percent increase from Rs.2,850 crores in Q3 FY24. In addition, the company saw a reduction in net profit to Rs.208 crores, compared to Rs.222 crores in the same period last year.
About the company
One97 Communications Limited is a prominent Indian multinational technology company operating primarily under the Paytm brand, which is recognized as India’s largest digital payments platform.
The company provides a diverse range of services including digital payment solutions, commerce and cloud services, and financial services aimed at both consumers and merchants in India.
Written by – Siddesh S Raskar
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