Paytm shares surge over 5% as SEBI approves registration of Paytm Money as research analyst

Shares of One 97 Communications, the parent company of Paytm, rose 5.40% in intraday trade on Tuesday, March 18, to ₹726 apiece after the company announced that its wholly-owned subsidiary, Paytm Money, has received approval from the market regulator to act as a research analyst.

“Paytm Money Limited, a wholly owned subsidiary of One 97 Communications Limited, has been granted a Certificate of Registration as a Research Analyst by the Securities and Exchange Board of India (SEBI) under the SEBI (Research Analysts) Regulations, 2014. The registration number for Paytm Money Limited as a research analyst is INH000020086,” the company said in today’s exchange filing.

With this registration, Paytm Money can offer SEBI-compliant research services, including investment insights, research reports, and data-driven analysis.

“This milestone aligns with Paytm Money’s objective to expand its offerings in the investment ecosystem, enhance user experience, and provide expert-backed insights to both retail and institutional investors. These services will soon be integrated into the Paytm Money app as part of a research and advisory offering, empowering investors to make well-informed financial decisions,” the company said.

The Indian financial services industry has seen rapid growth in recent years and is expected to expand further as households increasingly turn to stock markets to participate in India’s growth story. Many urban households in India have shifted from traditional investments such as bank deposits to stock investing, resulting in a sharp rise in mutual fund inflows and a significant increase in new demat accounts.

Mobile trading apps have attracted many young investors, and analysts expect the retail investor base, which has already expanded in recent years, to grow further in the coming years, benefiting brokerage and asset management companies.

Meanwhile, Paytm competitor PhonePe is reportedly set to enter Indian stock exchanges with an IPO valuation of 25 times sales for the year ended March 2024—a multiple six times higher than Paytm, Reuters reported. For context, Paytm debuted at 44 times sales in 2021.

Stock tanks 30% in 2025

The company’s shares, which emerged as one of the best turnaround stocks of 2024, have come under selling pressure in 2025 amid a sharp correction in the broader market, leading to a 30% decline in the current year so far.

In early December, the stock crossed the ₹1,000 mark, reaching ₹1,062—a level last seen in January 2022. This resurgence was driven by improving business prospects across various segments, which rejuvenated investor sentiment and bolstered confidence in the company’s growth trajectory.

In early March, the company received a notice from the Enforcement Directorate (ED) for the alleged violation of certain FEMA rules by the company and its two subsidiaries.

Meanwhile, mutual funds increased their stake in the company during the December quarter. A total of 27 mutual funds collectively held an 11.20% stake in Paytm, equivalent to 7.14 crore shares at the end of Q3 FY25. This marks a notable increase from the 7.86% stake held at the end of the September quarter, according to Trendlyne’s shareholding data.

Similarly, foreign investors also raised their stake in the company during the December quarter to 56.2%, up from 55.55% in September. Retail investors, on the other hand, trimmed their holdings to 31.9% in Q3 FY25, down from 36% in the September quarter.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.