Shares of Paytm (listed as One97 Communications) gained nearly 4 per cent on Monday after shareholders of the company approved the re-appointment of Vijay Shekhar Sharma as managing director and chief executive officer of the company. Paytm stock rose 3.65 per cent to Rs 800.05 today against the previous close of Rs 771.85 on BSE. Shares of Paytm were trading higher than 20 day, 50 day and 100 day moving averages but lower than 5 day and 200 day moving averages.
However, the stock has lost 41.2 per cent in 2022 but risen 5.64 per cent in a month.
Market cap of Paytm rose to Rs 50,904 crore on BSE. Total 1.05 lakh shares of the firm changed hands amounting to a turnover of Rs 8.33 crore.
ALSO READ:Paytm shareholders approve re-appointment of Vijay Shekhar Sharma as MD, CEO
The stock hit a 52-week high of Rs 1,961.05 on November 18, 2021 and a 52-week low of Rs 511 on May 12, 2022.
The large cap stock is still down by Rs 1,155 or 59.07 per cent compared to its IPO listing price of Rs 1,955 on November 18, 2021.
Sentiment was bullish on the Paytm counter today as investor advisory firm IiAS had recommended against the reappointment of Sharma and several other resolutions that were part of the agenda of the 22nd Annual General Meeting held on Friday.
IiAS had said Sharma made several commitments in the past to make the company profitable. However, they were yet to play out.
According to the scrutinizer report, 99.67 per cent votes were in favour of Sharma’s re-appointment while only 0.33 per cent voted against the resolution.
ALSO READ: Big day for Vijay Shekhar Sharma! Paytm AGM to seek approval for CEO’s reappointment, remuneration
In Q1 of the current fiscal, Paytm logged a 88 per cent rise in revenue. The firm said it remained confident of achieving break-even by September ’23 quarter and was also bullish on customer demand on usage of platform and monetisation.
Paytm’s consolidated loss widened to Rs 644.4 crore in the first quarter against a net loss of Rs 380.2 crore a year ago. Paytm said its contribution profit, which excludes taxes and marketing expenses but includes promotional incentives, rose over three-fold to Rs 726 crore in June 2022 quarter from Rs 245 crore in the year-ago period.