Indian Government Approves Paytm's FDI Proposal; Shares Surge 10%

Jul 26, 2024, 09:18 AM

The Indian government has approved Paytm's Foreign Direct Investment (FDI) proposal for its payment aggregator business, according to the Financial Services Secretary. This approval allows Paytm to approach the Reserve Bank of India (RBI) to seek a payment aggregator license, which the central bank will evaluate. Following the announcement, Paytm's share price surged by 10%, reaching Rs 508.85 per share and was locked in an upper circuit. The approval includes a 500 million rupees ($5.97 million) investment in Paytm's payments arm, enabling the company to resume normal operations.