The stock opened at INR 525 per share, a rise from the previous day's close of INR 496.25
However, it soon lost gains, dropping to INR 450 early on, down 9.2%
On Wednesday (February 7), shares of fintech giant Paytm surged 10% to hit the upper circuit at INR 496.75 on the BSE
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Shares of One97 Communications, the parent entity of fintech giant Paytm, resumed its downward trajectory on Thursday (February 8) after recovering some lost ground in the last two sessions.
The stock opened at INR 525 per share, a rise from the previous day’s close of INR 496.25. However, it soon lost gains, dropping to INR 450 early on, down 9.2%.
On Wednesday (February 7), shares of Paytm surged 10% to hit the upper circuit at INR 496.75 on the BSE. This comes amidst the company’s crisis following the Reserve Bank of India’s (RBI) restrictions on Paytm Payments Bank.
After experiencing a steep decline of over 42% in three consecutive sessions starting from last Thursday, Paytm shares managed to gain 3% in Tuesday’s trading session.
Following the RBI directive on January 31, which prohibited Paytm Payments Bank from engaging in deposit, credit, or top-up transactions in its customer accounts, alongside the cessation of other banking services like UPI facilities and fund transfers after February 29, 2024, concerns have emerged regarding the ramifications of this regulatory action on Paytm’s operation.
As disclosed in an exchange filing, Paytm anticipates that the RBI’s imposed restrictions will impact the company’s annual EBITDA by an estimated range of INR 300-500 Cr.
Furthermore, several brokerage firms have raised cautionary flags regarding the substantial financial implications that Paytm may face consequent to the RBI’s stringent measures.
Paytm CEO Vijay Shekhar Sharma met with RBI officials on Monday to discuss regulatory actions against Paytm Payments Bank. Despite Sharma’s request for an extension of the February 29 deadline, no assurances were given by the central bank.
Meanwhile, securities depository Central Depository Services India (CDSL) has reportedely initiated customer verification inspection of Paytm Money, the wealth management entity operated by One 97 Communications.
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