Last Updated: February 15, 2024, 11:45 IST
Paytm Share Price: Shares of Paytm have been in a freefall following RBI’s drastic motion on Paytm Payments Bank. The scrip continued to hit a brand new low for the third straight day in commerce on Thursday (February 15), whilst the corporate made a clarification that within the explanations sought from authorities, together with ED, the corporate has been rendering its full assist.
The contemporary revision within the circuit restrict comes a day after Paytm shares had been locked at their 10 p.c decrease circuit restrict.
The worth band has been revised from the present ranges with impact from February 15, 2024, BSE stated. Earlier the circuit restrict was revised down from 20 per cent to 10 per cent.
Circuits are typically revised based mostly on the Last Traded Price (LTP) of the inventory. Whenever a inventory plunges in worth drastically, exchanges decrease the circuit limits for that individual inventory.
Paytm has now misplaced about Rs 27,000 crore or 57 per cent of its worth within the final 11 days for the reason that bother started after RBI issued a ban on the funds financial institution which additionally homes Paytm pockets.
In an change submitting final night time, the fintech admitted that it has been receiving notices and requisitions over time for info, paperwork and explanations from ED, with respect to prospects which will have finished enterprise with the respective entities.
“We would also like to clarify that our associate Paytm Payments Bank Limited does not undertake Outward Foreign Remittance,” it stated.
What Investors Should Know?
Given the best way Paytm shares have fallen in the previous few days, consultants recommend retail traders to steer clear of the inventory until the time the regulatory hurdles are over. Earlier, it was additionally reported that the RBI is planning to cancel the license of Paytm Payments Bank.
Global broking agency Macquarie sees the inventory slumping to as little as Rs 275. It is now the most important bear on Paytm.
“We cut revenues sharply as we reduce both payments and distribution business revenues (60-65 per cent over FY25/26E). Moving payment bank customers to another bank accounts or moving related merchant accounts to other bank accounts will require KYC (Know your customer) to be done again based on our channel checks with partners, indicating that migration within RBI’s Feb 29th deadline will be an arduous task,” Macquarie analyst Suresh Ganapathy stated.
