Paytm Shares Plunge 9% Amid Reports Of ED Probe

SUMMARY

The stock recovered some losses at the time of writing and was trading nearly 3% lower at INR 827 apiece at 11:50 AM

With a dip in its share price, the company's market capitalisation dropped to INR 52,723 Cr with 92,14,969 Lakh shares traded hands by 11:50 AM

Paytm shares closed the trading session yesterday (January 23) at INR 848.95 apiece

Shares of One97 Communications, the parent company of Paytm, nosedived nearly 9% to their intraday low of INR 773.90 on the BSE today (January 24) after reports surfaced that Enforcement Directorate (ED) was probing the fintech major and seven others in connection with a crypto scam linked to HPZ Token.

Of the alleged “proceeds of crime” linked to the HPZ Token scam, ED reportedly froze INR 130 Cr in virtual accounts held with PayU, followed by INR 33.4 Cr with Easebuzz, INR 18 Cr with Razorpay, INR 10.6 Cr with CashFree and INR 2.8 Cr with Paytm.

However, the company has issued a clarification to the exchanges that it hasn’t received any notice from ED in relation to the probe. 

“We confirm that we have not received any such new notice, communication, or query from the Enforcement Directorate regarding the matter mentioned in the media articles,” Paytm said in a BSE filing. 

The stock recovered some losses later and was trading nearly 3% lower at INR 827 apiece at 11:50 AM. 

With a dip in its share price, the company’s market capitalisation dropped to INR 52,723 Cr at the same time with 92,14,969 Lakh shares traded hands by then. 

Paytm shares closed the trading session yesterday (January 23) at INR 848.95 apiece.

In the quarter ending December 2024 (Q3 FY25), the company narrowed its consolidated net loss by 6% to INR 208.5 Cr from INR 221.7 Cr in the same quarter last year on the back of recovery in its digital payments business.

However, its revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period.

It was reported a few days ago Paytm is planning to set up three new subsidiaries in the UAE, Saudi Arabia, and Singapore through its arm Paytm Cloud Technologies aiming to expand and monetise its tech-enabled payments and financial services in international markets.

In another recent development, the listed fintech’s board approved the sale of its 100% stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited. The expected date of completion of the sale is February 28. 

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