Paytm share price extends slide, drops over 9% to a record low

   2024-02-05 17:02

Paytm share price recovered sharply on Tuesday after a 9% fall in early trade amid heavy volumes traded on the stock exchanges. Paytm shares were trading over 5% higher on the BSE.

In the opening trade, Paytm shares plunged as much as 9.77% to a record low of 395.50 apiece on the BSE. However, it saw a steep recovery of over 19% from the low and were trading in the green.

As per reports, more than 68 lakh equity shares of One 97 Communications, the parent company of fintech giant Paytm, or 0.1% of equity, worth 269.4 crore change hands at an average price of 394 per share on the stock exchanges today.

Paytm stock price has fallen 39% in one week. The stock was locked in a lower circuit for three consecutive sessions after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from conducting certain operations following a system audit report and subsequent compliance validation report of external auditors. The RBI restrictions include a ban on accepting new deposits and conducting credit transactions after February 29.

Read here: RBI’s Paytm crackdown: How Paytm Payments Bank came under central bank’s radar

On Monday, media reports stated that the troubled fintech was in exploratory talks with a few companies, including HDFC Bank and Jio Financial Services, to sell its wallet business.

However, Paytm clarified that it is not in talks with any company to sell its wallet business. 

“…we clarify that the abovementioned news item is speculative, baseless and factually incorrect. We have not been in any negotiations in this regard. We have been informed by Paytm Payments Bank Limited, our associate company, that they also have not been in any negotiations in this regard,” One 97 Communications said in a regulatory filing.

At 9:55 am, Paytm shares were trading 5.51% higher at 462.50 apiece on the BSE. 

Catch Stock Market Live Updates here 

Here’s your comprehensive 3-minute summary of all the things Finance Minister Nirmala Sitharaman said in her Budget speech: Click to download!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here.
Download The Mint News App to get Daily Market Updates.


Published: 06 Feb 2024, 09:26 AM IST

Original Source