Paytm shares plunge 9% after consecutive two-day gains

Paytm shares dip: Following a two-day surge in stock prices, shares of One97 Communications Ltd, the parent company of Paytm, took a downturn on Thursday morning, plummeting over 9 per cent. Despite a promising start, the stock saw a sharp decline, dropping to Rs 450 on the BSE and Rs 450 on the NSE. As of 11:30 am, the Paytm shares are trading at Rs 463.70 apiece. 

According to media reports, CDSL, the largest domestic securities depository, is investigating the customer verification process of Paytm Money followed by various entities of Paytm, after the Reserve Bank of India’s January 31 directive.

The previous day, the stock had seen a notable increase of 10 per cent, following a 3 per cent rebound on Tuesday, after experiencing a significant decline over three consecutive trading days from February 1-5, amounting to a staggering 42 per cent decrease. This decline resulted in a market valuation loss of Rs 20,471.25 crore, prompted by regulatory actions from the Reserve Bank of India (RBI).

The RBI's recent directives targeted Paytm Payments Bank Ltd (PPBL), a subsidiary of One97 Communications Ltd, instructing it to cease accepting further deposits or conducting credit transactions, including top-ups on customer accounts, prepaid instruments, wallets, and cards for road toll payments beyond February 29.

Notably, PPBL operates as a restricted bank with deposit-taking capabilities but lacks lending privileges. It operates under the ownership of One97 Communications Ltd, which holds a 49 per cent stake in the bank's paid-up share capital, both directly and through its subsidiary. Founder Vijay Shekhar Sharma maintains a 51 per cent stake in the bank.

(With PTI inputs)