Geely, a Chinese automaker, has launched 11 low-earth orbit satellites from the Xichang Satellite Launch Center. Intended for accurate navigation for autonomous vehicles, Geely aims to have 72 satellites in orbit by 2025, with plans for a constellation of 240. The satellites offer high-resolution imaging and support commercial functions like connectivity to consumer electronics.
AT A GLANCE
- Paytm Shares Surge: Paytm’s stock jumps by 10% amid efforts to resolve regulatory issues with India’s finance minister and central bank.
- Regulatory Crackdown: The Reserve Bank of India (RBI) ordered Paytm Payments Bank to stop new deposits, causing a significant drop in share value.
- Continued Talks: CEO engages in discussions with government officials and the central bank to address regulatory concerns and compliance issues.
- Deadline Extension: Paytm seeks an extension beyond the Feb. 29 deadline from the RBI and clarity on transferring licenses for its wallet and toll payment services.
- Investor Confidence: Despite compliance challenges, investors gain confidence as the CEO engages with regulators to address issues.
- Buying Opportunity: Stock correction prompts potential buying opportunities for investors, though operational challenges remain unclear.
- Below Target: Paytm shares still trade 24% below the median price target of 650 rupees, reflecting ongoing concerns among analysts and investors.
(Image: Sanjay Rawat/Forbes)
Paytm Shares Soar After CEO Meets Regulators to Address Payment Bank Crisis
Bengaluru, India – February 7, 2024 – Shares of Paytm, the embattled Indian digital payments giant, witnessed a surge of 10% on Wednesday after media reports emerged regarding CEO Vijay Shekhar Sharma’s meeting with the country’s finance minister and central bank chief to discuss a resolution to the ongoing regulatory crackdown on its payments bank business.
This news comes as a glimmer of hope for the company, which has been facing immense pressure since the Reserve Bank of India (RBI) ordered Paytm Payments Bank (PPBL) to halt new deposits and restrict its popular digital wallets from March 31st due to non-compliance with regulations and supervisory concerns. The RBI’s action triggered a drastic plunge in Paytm’s share price, which had already been struggling before the order.
However, Wednesday’s rise follows Tuesday’s gains, which were also fueled by reports of ongoing talks between Paytm and government officials. A source with direct knowledge of the discussions revealed that the company is actively working with both the RBI and the Ministry of Finance to address the compliance issues and concerns raised by the regulators.
Paytm has reportedly requested an extension of the February 29th deadline imposed by the RBI and is seeking clarity regarding the transfer of its wallet business and Fastag (digital highway toll payment service) license.
“Investors are cautiously optimistic about the CEO’s meeting with the regulators,” said Kranthi Bathini, equity strategist at WealthMills Securities. “While the core compliance issues remain unresolved, and the company’s operational future remains uncertain, the significant stock price correction might be attracting some opportunistic buying.”
Despite the recent gains, Paytm’s shares are still trading around 24% below the median analyst price target of ₹650. Analysts believe that the company’s substantial payment operations are crucial for both customers and merchants, and a sudden shutdown of PPBL could cause widespread inconvenience. Therefore, they expect efforts to be made to ensure a smooth transition away from its dependence on the payments bank.
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The information above is curated from reliable sources and modified for clarity. Slash Insider is not responsible for its completeness or accuracy. We strive to deliver reliable articles but encourage readers to verify details independently.
