Paytm share price jumped nearly 4 per cent to touch the day’s high of Rs 800 per share on the BSE on NSE intraday during Monday’s session as the company’s shareholder gives approval for the reappointment of Vijay Shekhar Sharma as managing director (MD) and chief executive officer (CEO).
According to Paytm’s exchange filing, Sharma received 99.67 per cent of votes in favour and 0.33 per cent of votes against from shareholders during the company’s 22nd annual general meeting (AGM) with respect to approval of re-appointment as MD and CEO of the company for the five more years.
“Thank you to our shareholders for a heartening response to our first AGM as a listed company. With overwhelming support, our MD & CEO Vijay Shekhar Sharma will continue to lead and guide us. All resolutions from our 22nd AGM have been duly passed.” Paytm said through its Twitter handle.
Paytm`s parent One97 Communications Ltd, backed by China`s Alibaba Group Holding and its affiliate Ant Group, posted a loss of 6.44 billion rupees ($80.83 million) for the June quarter earlier this month but said it was on track to achieve operational profitability by September 2023.
Institutional Investor Advisory Services (IIAS) had raised questions over the reappointment of Vijay Shekhar Sharma as CEO and managing director and raised concerns about Sharma’s overall remuneration earlier this month.
Domestic brokerage firm YES Securities upgraded Paytm from ‘Reduce’ to ‘Neutral’ with a revised price target of Rs 850 per share and value the stock at 6.0x FY24 P/S amid healthy Q1 earnings.
With gross margins at 43 per cent, JM Financial believes the incremental path to monetization remains primarily contingent on a reduction in indirect spends and ESOP costs for Paytm. The recent rally is also a function of synchronous global upmove in fintech companies it said, maintaining a Sell rating.
At around 12:00 PM, the stock is up over 1.5 per cent to Rs 783.9 and Rs 785 per share on the BSE and NSE as compared to over 1 per cent each decline in the BSE Sensex and Nifty50.