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HomeFinancePaytm rebounds 19% from record low amid heavy volumes

Paytm rebounds 19% from record low amid heavy volumes

Shares of One 97 Communications (OCL), parent of fintech giant Paytm, recovered 8 per cent to Rs 472.50 from its all-time low of Rs 395.50 on the BSE in intraday trade on Tuesday amid large volumes.

The stock fell below its previous low of Rs 438.35 hit on November 23, 2022. In the last four trading sessions, the stock has plunged 48 percent from the level of Rs 761 on January 31, after After the Reserve Bank of India (RBI) ordered Paytm Payments Bank (PPBL), an associate company of OCL, to cease its core banking services after February 29.

The RBI announced that no further deposits, credit transactions or top-ups will be allowed in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Card (NCMC) cards, etc., after February 29, 2024, except interest . , cashback or refunds that can be credited at any time.

For the first time in the last four trading days, Paytm shares are trading in the green, thanks to multiple news streams, including startup founders writing to the Prime Minister, Finance Minister and RBI to review regulatory measures on PPBL.

At 10:25 a.m.; Paytm was trading nearly 7 per cent higher at Rs 467.75, compared to 0.26 per cent rise in the S&P BSE Sensex. The average over-the-counter trading volume today has more than doubled. Altogether, 47.82 million shares changed hands on NSE and BSE, exchange data shows.

Morgan Stanley had on Friday, February 2, bought 5 million shares of One 97 Communications for Rs 244 crore through an open market purchase. Morgan Stanley, through its subsidiary Morgan Stanley Asia (Singapore) Pte, ODI acquired shares of OCL, the parent company of Noida-based Paytm, on the National Stock Exchange (NSE). The foreign investor purchased shares at a price of Rs 487.20 per share.

Meanwhile, there are rumors in the market that Mukesh Ambani will acquire Paytm wallet. However, the company clarified that the news is speculative, unfounded and factually incorrect. “We have not been in any negotiations regarding this. PPBL, our associate company, has informed us that they have also not entered into any negotiations in this regard,” OCL said in an exchange statement.

OCL on Monday also denied any investigation by the Enforcement Directorate into the company, its associates and management. “We would like to reiterate that the Company and its associate PPBL are not the subject of any such investigation. “These media reports are totally misleading, baseless and malicious, and harm the interests of all our stakeholders,” the company said.

First published: February 6, 2024 | 10:48 am IS



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