Paytm was locked at Rs 438.35, down 10%, for the following reason. Its pricing band was changed from 20% to 10%.
Paytm’s current share price: The management’s response to conjectural media reports about an ED probe failed to stimulate demand.
Following a media report indicating that the RBI was considering terminating Paytm Payment Bank’s license, shares of One 97 Communications Ltd. (Paytm) were frozen at their lower circuit limits of 10% for the third consecutive session on Monday. The company’s CEO and management did not participate in anti-money laundering activities, despite the management clarifying in speculative media pieces that there was an ED inquiry.
The price band for Paytm stock was locked at Rs 438.35, down 10%, with a lowered price range of 10% from 20%. As a result, over the previous three sessions, the scrip has dropped 43%. The RBI may potentially revoked Paytm Payments Bank’s license as early as next month, according to a report by Bloomberg. As per an additional report, traders were instructed by the trader body CAIT to switch from Paytm to alternative payment methods.
After the RBI regulations, a few brokerages drastically lowered their target prices for PAytm. Reducing its target price to Rs 500 per share, Jefferies downgraded the stock to “Underperform.” At Rs 650 per share, Macquarie lowered its target price.
The last time Motilal Oswal took a “watchful stance” on Paytm’s business model robustness and its capacity to handle the erratic macro and regulatory landscape, it was. It recommended setting a goal of Rs 575 on Paytm.
Paytm released an explanation. “To clear up any confusion, we firmly reject any participation in any anti-money laundering initiatives. Paytm stated, “We have adhered to Indian laws and will continue to do so. We also take regulatory orders very seriously.”
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.
