![Paytm](https://img.etimg.com/thumb/msid-107450342,width-650,height-488,imgsize-222478,resizemode-75/paytm.jpg)
Shares of Paytm’s parent One 97 Communications Ltd. rose as much as 8%, the most in six months, after the company denied reports of the firm or its associate Paytm Payments Bank Ltd. being probed for foreign exchange rules violation.
The shares had plunged more than 40% in a three-day selloff through Monday after the Reserve Bank of India ordered the company to halt the bulk of its business activities. The stock extended the decline by another 9.9% in pre-market trading on Tuesday but soon erased the loss.
For investors with a long-term view, Paytm’s large franchise offers a “lot of value,” Dolat Capital Market Ltd. analyst Rahul Jain said in an interview on Bloomberg Television.
The company on Tuesday also clarified that it’s not in talks with any company to sell its wallet business, after local media reported billionaire Mukesh Ambani’s Jio Financial Services Ltd. was in negotiations to acquire the business.
Paytm shares are primed for “healthy upside” on limited regulatory impact on products outside the ones that have a high dependency on its payments bank, Sanford C Bernstein analysts including Pranav Gundlapalle wrote in a note.
Discover the stories of your interest
“We would lean toward the ‘buy now’ camp,” the analysts said, retaining their outperform recommendation on the company.