Paytm's stock is up 471 percent after a jump in loan disbursements in April and May.
One 97 Communications, which owns Paytm, saw its stock rise on June 15 after the fintech company reported strong operating results for the two months ended in May.
Paytm's lending business maintained its strong performance from the previous quarter, with loan disbursements increasing 471 percent year over year to 5.5 million in April-May.
In the first two months of the current quarter, disbursements totaled Rs 3,576 crore, an increase of 829 percent over the same period last year. "As a result of the scale-up of the personal loans sector in particular, we are also seeing rises in the average ticket size," Paytm stated.
Paytm also announced tremendous growth in merchant payments, with merchant payments volume increasing 100 percent year over year and gross merchant value processed reaching Rs 1.96 lakh crore in the last two months.
Paytm reported that monthly transaction users on its flagship app increased by 48 percent year over year to 74.3 million in the current quarter.
Paytm's stock has been under pressure since it was listed on the stock exchanges in November 2021. The stock has lost more than 70% of its value since its initial public offering (IPO) price of Rs 2,150 per share.
However, after hitting a 52-week low of Rs 510.1 lately, the stock has recovered more than 20%.
At 11:00 a.m., Paytm's stock was up 1.5 percent on the National Stock Exchange, trading at Rs 615.6.