Last Updated:June 12, 2025, 09:48 IST
Shares of One97 Communications, the parent company of digital payments firm Paytm, plunged as much as 10% on Thursday
Paytm Shares Crash
Paytm Share Price: Shares of One97 Communications, the parent company of digital payments firm Paytm, plunged as much as 10% on Thursday, June 12, marking their steepest single-day fall since February 2023.
The sharp decline in Paytm’s stock price comes on the heels of a clarification issued by the Finance Ministry regarding speculation over the potential introduction of a merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions.
This follows a flurry of media reports suggesting that MDR charges might be reintroduced.
According to Morgan Stanley, the development is particularly significant for Paytm. The brokerage noted, “Our adjusted EBITDA estimates for Paytm are above consensus, assuming the UPI take rate reverts to FY24 levels (2 basis points).” Specifically for Paytm, the UPI incentive was slashed to Rs 70 crore in FY25, down from Rs 290 crore in FY24. Morgan Stanley added, “If the media reports are accurate, there could be downside risk to our medium-term estimates.”
Another global brokerage, UBS, maintains a ‘Neutral’ rating on One97 Communications, with a price target of Rs 1,000 per share.
Meanwhile, in a post on X (formerly Twitter), the Finance Ministry categorically denied the introduction of any MDR on UPI transactions, refuting the speculative reports.
UBS noted that the delay or non-introduction of MDR is sentimentally negative for Paytm. “We build in a 1 basis point contribution to Paytm’s net payment margin from either MDR implementation or increased incentives versus the Budget. Without either, our FY26/FY27 adjusted EBITDA estimates could see a downside of over 10%,” the brokerage added.
As of the latest trade, shares of One97 Communications Ltd. were down 8.28% at Rs 880.60. The stock has declined 11% year-to-date.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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