For long-term Paytm shareholders, Thursday's rally marked a significant milestone, with the stock moving closer to its listing-day high nearly five years after its IPO. The shares ended today's session 7.3% higher at ₹1,925, their highest closing level since making their stock market debut in November 2021.
The rally came amid improving investor sentiment, driven by expectations that the introduction of merchant discount rate (MDR) charges could boost margins and provide a fresh growth driver for the company.
Analysts believe the introduction of MDR could be a structural positive for the digital payments industry, particularly for companies with significant UPI merchant-acquiring businesses.
According to the National Payments Corporation of India (NPCI), MDR charges would be implemented immediately after Diwali, with the revised effective date to be notified separately. With the festive period now over, merchants and payment companies are awaiting further clarity on the rollout.
Although the stock has moved closer to its listing-day levels, the milestone comes after a sustained rally that began in April. Paytm shares closed higher in five of the seven months since then, with a 28% return in August marking their biggest-ever monthly gain and has rebounded 100% from March lows.