Paytm Shares Plunge 15% in 2 Days: RBI Crackdown Impact
Feb 09, 2024 17:07
Paytm shares have fallen over 15% in two days after the Reserve Bank of India imposed restrictions on Paytm Payments Bank. The stock has been on a downward trend following the RBI's crackdown on the company.
Photograph: Niharika Kulkarni/Reuters.
New Delhi, Feb 9 (PTI) Shares of One97 Communications Ltd, which owns the Paytm brand, tanked over 15 per cent in two days as investors again turned to dump the stock.
Extending its previous day's decline, the stock tanked 6.09 per cent to settle at Rs 419.85 on the BSE. During the day, it dived 8.67 per cent to Rs 408.30.
Shares of the company dropped 6.15 per cent to Rs 419.15 on the NSE. During the day, the stock tumbled 8.20 per cent to Rs 410.
In two days, the stock fell 15.48 per cent, eroding Rs 4,870.96 crore from its market valuation on the BSE.
Shares of One97 Communications Ltd fell 10 per cent to hit lower circuit limit on Thursday, after a two-day rally in the stock fizzled out.
One97 Communications stock price had climbed 10 per cent on Wednesday and rebounded over 3 per cent on Tuesday after three days of sharp fall.
From February 1-5 (three days of trading), the company's stock tumbled over 42 per cent, wiping out Rs 20,471.25 crore from its market valuation, following the Reserve Bank of India's (RBI) crackdown.
On January 31, the RBI ordered Paytm Payments Bank Ltd, a restricted bank that can take deposits but cannot lend, to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.
RBI Governor Shaktikanta Das on Thursday said there are no systemic worries and the action on Paytm was driven by a "lack of compliance" on the part of the company.
Paytm Payments Bank Ltd (PPBL) is an associate of One97 Communications Ltd.
One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Founder Vijay Shekhar Sharma has a 51 per cent stake in the bank.
PPBL Independent Director Manju Agarwal is learnt to have resigned from the board after the RBI imposed restrictions on the bank's operations.
According to a source, Agarwal resigned with effect from February 1.
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