Paytm Shares Plunge 10% After RBI Crackdown

New Delhi, Feb 8 (PTI) Shares of One97 Communications Ltd, which owns the Paytm brand, fell by 10 per cent to hit lower circuit limit on Thursday, after a two-day rally in the stock fizzled out.

Despite a firm beginning, the stock tanked 9.99 per cent to Rs 447.10 -- its lower circuit limit -- on the BSE.

On the NSE, it tumbled 9.99 per cent to Rs 446.65 -- its lowest trading permissible limit for day.

The company's market valuation eroded by Rs 3,153.18 crore to Rs 28,394.44 crore.

In traded volume terms, 22.79 lakh shares of the company were traded on the BSE and over 2.12 crore shares on the NSE during the day.

Shares of One97 Communications Ltd 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 Ban of India's 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.

Reserve Bank Governor Shaktikanta Das on Thursday said there are no systemic worries and the action on Paytm was driven by a "lack of compliance" at Paytm.

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.