Rolling Downhill! Paytm Shares Tumble Another 5% After ED Action – News18

Paytm Share Price: Shares of Paytm have been in a freefall following RBI’s drastic action on Paytm Payments Bank. The scrip continued to hit a new low for the third straight day in trade on Thursday (February 15), even as the company made a clarification that in the explanations sought from authorities, including ED, the company has been rendering its full support.

The fresh revision in the circuit limit comes a day after Paytm shares were locked at their 10 percent lower circuit limit.

The price band has been revised from the existing levels with effect from February 15, 2024, BSE said. Earlier the circuit limit was revised down from 20 per cent to 10 per cent.

Circuits are generally revised based on the Last Traded Price (LTP) of the stock. Whenever a stock plunges in value drastically, exchanges lower the circuit limits for that particular stock.

Paytm has now lost about Rs 27,000 crore or 57 per cent of its value in the last 11 days since the trouble began after RBI issued a ban on the payments bank which also houses Paytm wallet.

In an exchange filing last night, the fintech admitted that it has been receiving notices and requisitions over time for information, documents and explanations from ED, with respect to customers that may have done business with the respective entities.

“We would also like to clarify that our associate Paytm Payments Bank Limited does not undertake Outward Foreign Remittance,” it said.

What Investors Should Know?

Given the way Paytm shares have fallen in the last few days, experts suggest retail investors to stay away from the stock till the time the regulatory hurdles are over. Earlier, it was also reported that the RBI is planning to cancel the license of Paytm Payments Bank.

Global broking firm Macquarie sees the stock slumping to as low as Rs 275. It is now the biggest 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 said.