Paytm

Paytm’s stock dropped today feb 2024 :

Since the Reserve Bank of India started taking strong regulatory action against Paytm Payments Bank Limited, Paytm shares have taken a serious beating.

For the third straight trading session on Monday, shares of One97 Communications Limited, the company that owns digital payments startup Paytm, fell below their lower circuit limit. Paytm’s stock has dropped to an all-time low as a result.

Following a 10% decline, Paytm shares were trading at Rs 438.50 each, continuing their terrifying run on Dalal Street following the Reserve Bank of India’s action against its partner, Paytm Payments Bank Limited.

Paytm share price today: In response to the 36% counter rout over the last two sessions, stock exchanges have lowered the price band for the stock from 20% to 10%.

Paytm share price today: In response to the 36% counter rout over the last two sessions, stock exchanges have lowered the price band for the stock from 20% to 10%.

Paytm stated in a filing to stock markets that the Enforcement Directorate is not looking into the fintech company, its founder, or its CEO in relation to, among other things, money laundering. Paytm stated that in the past, certain users and merchants on its platforms were the focus of investigations, and in those cases, it worked with the authorities.

Paytm stock
paytm

In just three days, Paytm’s stock has lost approximately 42% (or Rs. 20,500) after plunging further 10% and hitting the lower circuit.

  • Paytm was in crisis management mode during the weekend, attempting to control the repercussions from additional bad news that kept coming in. Following allegations that the Enforcement Directorate (ED) may launch an investigation if money laundering accusations are discovered, the corporation has denied that it is the subject of any investigation.
  • Even still, investors are still unloading Paytm shares on Dalal Street, believing that the RBI’s move will materially affect the company’s future operations. As a result, the clarification has not been able to protect the company’s stock.
  • A Bloomberg story, meantime, said that the RBI may revoke the license of Paytm Payments Bank as soon as next month. According to a different research, businesses should stop using Paytm and instead use alternative payment methods recommended by the trader association CAIT.
  • Furthermore, because of RBI regulations, a few brokerages have reduced their target prices for Paytm.
  • Macquarie cut its target price to Rs 650 per share, while Jefferies downgraded it to ‘Underperform’ with a target price of Rs 500 per share. Regarding Paytm’s business strategy, Motilal Oswal is hesitant and recommended a goal of Rs 575.
  • “We have collaborated with the authorities on any previous investigations they have conducted on a certain group of users or merchants. The stock exchanges have already been informed of this,” the statement stated.
  • According to Paytm, there have been media reports and social media stories that disseminate rumors and false information on the rationale behind the RBI’s move against Paytm Payments Bank.
  • Jio Financial Services shares rallied up to 14% to day’s
    high at ₹288.75 on BSE after a newspaper report claimed that One 97
    Communications- Paytm’s parent company- is in talks with the Mukesh
    Ambani-owned NBFC and private sector lender HDFC Bank to sell its wallet
    business.

The latest directive from the RBI is a component of the continuous process of supervisory engagement and compliance. We do not depend on unofficial sources for this action; instead, we direct our stakeholders to the official press announcement issued by the RBI on January 31, 2024. To make sure that our stakeholders are shielded from unjustified and speculative stories, we are looking into every possibility,” the statement read.

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