Shares of One97 Communications, the parent company of Paytm, were trading 5% higher in Thursday morning deals after the government reportedly granted approval for it to invest downstream in its wholly-owned subsidiary Paytm Payments Services Ltd.
The stock was last trading at Rs 565.05 on the BSE, while on the NSE it surged 4.98% to Rs 564.80 a share.
In a filing on Wednesday, the company said it will reapply for this payment aggregator's licence.
It said, "We are delighted to inform that PPSL has obtained Government of India, Ministry of India, Department of Financial Services approval for downstream investment by the company in PPSL vide their letter dated August 27, 2024. At this, PPSL would be going ahead with the refiling of its PA application. In the interim, PPSL will continue providing online payment aggregation services to its existing partners."
In the previous month of November 2022, the central bank had denied an approval for a PA license to Paytm and instead asked the company to follow Press Note 3 under FDI norms. Press Note 3 puts a condition of prior government approval on investments from countries with a land border with India.
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