Paytm shares rebound after three days of heavy fall
The stock jumped 7.79 per cent to Rs 472.50 during the day on the BSE despite a weak beginning to the trade. It ended at Rs 451.60 apiece
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NEW DELHI: Shares of One97 Communications Ltd, which owns Paytm brand, rebounded on Tuesday after three days of sharp fall.
The stock jumped 7.79 per cent to Rs 472.50 during the day on the BSE despite a weak beginning to the trade. It ended at Rs 451.60 apiece, reflecting a gain of 3.02 per cent. Shares of the company climbed 7.99 per cent to Rs 473.55 during the day on the NSE and ended at Rs 452.80 each, up 3.26 per cent.
Recovery in the stock added Rs 852.78 crore to its market capitalisation (mcap), which stood at Rs 28,680.23 crore. In the past three days, the company’s stock tumbled over 42 per cent, wiping out Rs 20,471.25 crore from its market valuation, following the RBI’s crackdown.
Shares of One97 Communications Ltd had hit its lower circuit limit on Monday.
Last week, 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. PPBL is an associate of One97 Communications Limited (OCL).
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.
FIU, ED seek report from RBI on Paytm
Meanwhile, the Enforcement Directorate and the Financial Intelligence Unit have asked the RBI to share its report on the recent action taken to bar PPBL from accepting deposits or top-ups in customer accounts, official sources said on Tuesday. Federal agencies ED and FIU, tasked with checking violations under the Prevention of Money Laundering Act, are already probing matters related to the payment gateway under provisions of the anti-money laundering law.
Paytm has said it did no wrong and asserted that its brand owner company One97 Communications, founder and CEO Vijay Shekhar Sharma and PPBL are not being investigated for money laundering or foreign exchange violations. The ED has asked the RBI to share its latest report so that it can analyse if it needs to initiate a probe against PPBL, a senior official said.
