On July 8, one 97 Communications, the parent company of Paytm, saw a spike in shares of almost 9% following the announcement by CEO Vijay Shekhar Sharma that his business’s aim is to become a “$100 billion company”.
The company’s market capitalization has dropped to about $3.5 billion as a result of the central bank’s crackdown on its subsidiary Paytm Payments Bank, therefore it will be difficult for it to achieve the same.
Speaking at the 7th JIIF Foundation Day ceremony in Gurugram, Sharma discussed his objective. He seemed upbeat about Paytm’s development in his speech, saying that the business is ready for rapid expansion in spite of the setback experienced earlier this year.
“My personal goal is to grow Paytm into a $100 billion Indian enterprise,” Sharma stated, expressing a desire for the brand to gain international recognition.
Due to non-compliance, the Reserve Bank of India imposed significant business limitations on Paytm Payments Bank Limited earlier this year, essentially shutting down a number of its primary operations.
As a result of the company’s shares being severely damaged, Paytm lost a substantial amount of its market capitalization. Sharma accepted the current situation and said it was a test of maturity and accountability.
Sharma remarked, “We ought to have understood better and carried out our responsibilities more successfully.” “We are now far better prepared to navigate challenges,” he stated.
Paytm shares were up 8% at Rs 472.40 on the National Stock Exchange (NSE) at 2:34 PM. Over the last few weeks, the stock has increased. The share price has increased by 21.4 percent in the past month.
But the stock is still down 26.8 percent year-to-date (YTD). Some analysts think that Paytm is probably about to start a new rise.
Disclaimer: Neither Moneycontrol.com nor its management endorses the opinions or investment advice offered by the financial gurus on the website. Users are advised by Moneycontrol.com to consult with qualified professionals before making any financial decisions.