News India Point
Buisness

Paytm shares fall 20% to enter a lower trading range and drop 40% in two days

<p>Shares of the progenitor company of Paytm, One97 Communications Limited, experienced a 20 percent descent for the consecutive second day, thereby instigating the activation of the lower circuit during Friday’s trading session.</p>
<p><img decoding=”async” class=”alignnone wp-image-383677″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-fall-20-to-enter-a-lower-trading-range-and-drop-40-in-two-days-khatam.jpg” alt=”theindiaprint.com paytm shares fall 20 to enter a lower trading range and drop 40 in two days khatam” width=”1079″ height=”607″ title=”Paytm shares fall 20% to enter a lower trading range and drop 40% in two days 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-fall-20-to-enter-a-lower-trading-range-and-drop-40-in-two-days-khatam.jpg 690w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-fall-20-to-enter-a-lower-trading-range-and-drop-40-in-two-days-khatam-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-paytm-shares-fall-20-to-enter-a-lower-trading-range-and-drop-40-in-two-days-khatam-150×84.jpg 150w” sizes=”(max-width: 1079px) 100vw, 1079px” /></p>
<p>The valuation of Paytm shares diminished by 20 percent, settling at Rs 487.20 on the National Stock Exchange (NSE). Consequently, Paytm shares have plunged to a nadir within the 52-week spectrum, registering a 40 percent decline over merely two trading sessions.</p>
<p>Despite Paytm’s assertion that it possesses the resilience to surmount the challenges arising from the Reserve Bank of India’s intervention against Paytm Payments Bank Limited, various analysts have opined that this regulatory move will adversely impact Paytm’s operational landscape.</p>
<p>In a preceding filing with the stock exchange, Paytm intimated that the RBI’s actions against its affiliate could potentially exert a Rs 300 crore to Rs 500 crore impact on the annual EBITDA in an adverse scenario.</p>
<p>This development transpired even after the top echelons of Paytm’s leadership conducted an analyst call on Thursday, elucidating the strategic roadmap for navigating the hurdles ahead. While the founder and CEO, Vijay Shekhar Sharma, characterized the regulatory intervention as “more of a speed bump,” expressing confidence that “we will be able to surmount the same in the ensuing days.”</p>
<p>In a communiqué posted on the social media platform X on Friday, Sharma assured Paytm users that “your favored application is functioning seamlessly and will continue to do so beyond the 29th of February as customary.”</p>
<p>Notwithstanding these assurances and Paytm’s efforts at damage control, several financial analysts have deprecated the stock, citing the repercussions of the RBI’s measures against Paytm Payments Bank.</p>
<p>Jefferies, JP Morgan, JM Financial, and Axis Capital are among the financial institutions that have downgraded the Paytm stock subsequent to the regulatory actions by the Reserve Bank of India.</p>

Related posts

Startups are sent letters by the income tax department to assess their investor trustworthiness

cradmin

OTT streaming applications contact CCI to contest the Play Store Commission’s authority

cradmin

Which Offers Higher Returns Between Mutual Funds and Fixed Deposits?

cradmin