Paytm Shares Decline Nearly 9 Per Cent Again
On the BSE, the stock plunged 8.67 per cent to Rs 408.30, extending its previous day's losses. Similarly, on the NSE, shares of One97 Communications Ltd dropped 8.20 per cent to Rs 410
The shares of One97 Communications Ltd, the parent firm behind the Paytm brand, witnessed another sharp decline of nearly 9 per cent on Friday, marking another tumultuous day for investors. On the BSE, the stock plunged 8.67 per cent to Rs 408.30, extending its previous day's losses. Similarly, on the National Stock Exchange (NSE), shares of One97 Communications Ltd dropped 8.20 per cent to Rs 410. At 2.50 pm, the Paytm shares were trading at Rs 421.55 apiece, down 5.71 per cent, on the BSE on Friday.
This downturn follows a 10 per cent decrease in the company's stock on Thursday, triggering the lower circuit limit, after a brief two-day surge in its value. The rally, which saw a 10 per cent climb on Wednesday and a modest 3 per cent rebound on Tuesday, came after a sharp decline of over 42 per cent from February 1-5, erasing Rs 20,471.25 crore from its market capitalisation.
The Reserve Bank of India's (RBI's) recent crackdown on Paytm Payments Bank Ltd, a subsidiary of One 97 Communications Ltd, has rattled investors. The central bank ordered the payments bank to cease accepting further deposits, conducting credit transactions, or topping up customer accounts, prepaid instruments, wallets, and cards for road toll payments after February 29.
Governor Shaktikanta Das addressed concerns, stating there are no systemic worries and attributing the action to a "lack of compliance" at Paytm. Paytm Payments Bank Ltd, in which One97 Communications holds a 49 per cent stake, operates with Vijay Shekhar Sharma, the company's founder, owning a controlling 51 per cent interest.
In the wake of the RBI's restrictions, reports indicate that Manju Agarwal, an independent director at Paytm Payments Bank Ltd, tendered her resignation from the board, effective February 1. Agarwal's departure underscores the tumultuous landscape surrounding One97 Communications Ltd and its associated entities amidst regulatory scrutiny.
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