Paytm shares cross ₹1,955 IPO listing-day high after five years; what's boosting investor confidence?

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Paytm shares climbed nearly 2% to ₹1,960, surpassing their IPO listing-day high for the first time. The rise followed preliminary RBI approval for subsidiary PPSL to issue prepaid payment instruments, including digital wallets.

Shares of Paytm, the parent company of One 97 Communications, have crossed their IPO listing-day high for the first time since the company's stock market debut in November 2021, following a major regulatory development concerning its digital wallet business.

During market hours on Friday, the company announced that its payments services subsidiary, Paytm Payments Services Limited (PPSL), had received preliminary approval from the Reserve Bank of India (RBI) to issue prepaid payment instruments (PPIs), including digital wallets. The development marks a significant regulatory milestone for the company as it looks to revive its wallet business.

Following the announcement, Paytm shares jumped nearly 2% to hit ₹1,960, surpassing their listing-day high of ₹1,955 touched in November 2021. The stock was last seen trading around these levels during its market debut, making Friday's move a significant milestone for investors who have held the stock since its IPO.

The approval is significant because Paytm's wallet operations were affected by regulatory action against Paytm Payments Bank, which had been closely associated with its earlier wallet ecosystem.

On April 24, 2026, the RBI cancelled Paytm Payments Bank's banking licence, prohibiting it from conducting banking business with immediate effect. The latest approval provides a separate regulatory route for Paytm to rebuild its wallet business through PPSL, rather than relying on its former banking subsidiary.

However, PPSL can begin offering these services to customers only after receiving the RBI's final authorisation. To secure the final approval, the subsidiary must complete a comprehensive systems and cybersecurity audit and submit the report to the RBI within six months.

The company had previously applied for a fresh PPI authorisation to revive its wallet offering. The latest development marks an important regulatory milestone in that process, bringing it closer to restarting its digital wallet operations.

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