Paytm shares tank nearly 9%; investors continue to dump the stock
New Delhi: Shares of One97 Communications Ltd, which owns the Paytm brand, tanked nearly 9 per cent on Friday as investors continued to dump the stock.
Extending its previous day’s decline, the stock dived 8.67 per cent to Rs 408.30 on the BSE.
Shares of the company tumbled 8.20 per cent to Rs 410 on the NSE.
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 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.
Paytm Payments Bank independent director Manju Agarwal is learnt to have resigned from the board after an RBI order imposed restrictions on the bank’s operations.
According to a source, Agarwal resigned with effect from February 1.
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