Paytm Shares Up by 9%; Company’s CEO Aims to Make its Valuation $100 Billion
One 97 Communications, which is the parent company of Paytm, reached a more than 9% high on July 8 as Vijay Shekhar Sharma, the chief executive officer of the company, declared that he wants Paytm to become a $100 billion firm.
The company faces a great task in achieving the same, as its market capitalization has reduced to a level of about $3.5 billion after the central bank (RBI) targeted one of the biggest payment system operators, PPS Paytm Payments Bank.
The aforementioned goal was mentioned by Vijay Shekhar Sharma during the 7th JIIF Foundation Day, where Sharma was one of the speakers, and it was held in Gurugram. He appeared very positive in his speech about the company, advising that Paytm is set to grow very fast considering the growth check that it hit earlier this year.
Speaking about his personal goals, Sharma said that he has a personal ambition to take Paytm to a $100 billion Indian company and further wants Paytm to be a global brand.
This year, in May, the RBI imposed stringent business curtailments on Paytm Payments Bank Limited and effectively shut down a number of activities for which the company was infamous for non-adherence to rules.
Consequently, the value of Paytm eroded massively as it simply lost a third of its market capitalization, given that the firm’s shares were beaten badly. Sharma admitted to the recent crisis situation, which he said was a rite of passage for any small business organization.
Sharma said, “But we should have understood better and fulfilled our responsibilities better.”
He also added, “We are now far better prepared to face challenges.”
Paytm was trading at Rs.472.40 at 2:34 pm, up by 8% on the National Stock Exchange (NSE). Hence, over the last several weeks, the stock has reversed its slide. In the last month, the shares have gone up by 21.4%.
Year to date, or YTD, on the other hand, the stock has been down by as much as 26.8%. Analysts asserted that it could very well be the start of a new upward movement for Paytm’s stock price.
