Shares of One 97 Communications Ltd, the parent company of Paytm, rose nearly 5% on Monday's early trade following the news of telecom major Bharti Group expressed interest in buying stake in the fintech company.
According to the reports, Sunil Mittal, the founder of Bharti Enterprises, wanted to merge Airtel Payments Bank with Paytm Payments Bank through a stock transaction and also wanted to purchase Paytm shares from other shareholders.
However, as per media reports, the fin tech company's management has declined the offer. On the other side, some reports state that Jack Ma-backed Ant Group has also been looking to reduce its take in Paytm. As of December, the Jack Ma-backed company owned 24.86% of One97 Communications.
Analysts expect that the stock is likely to see volatility as a result of these developments. "The stock is showing positive traction since last couple of days. Further, positive traction can be seen towards 680 with immediate support around 600," said an analyst.
The stock's weekly average delivery volume is 31.29%. The stock gained 44.72% from 52 week low of 438.4 recorded on November 23, 2022.
According to a Mintgenie poll, 11 analysts have recommended 'strong buy' on the stock.