February 5 turned out to be a challenging day for the shares of Vijay Shekhar Sharma's company, Paytm (One97 Communications). As the stock market opened, Paytm's stock witnessed a 10 percent drop from its previous closing price on the BSE, hitting the lower circuit at Rs 438.35. This marks a 52-week low for the stock, and the company's market cap has fallen to Rs 27,838.75 crore. It's noteworthy that this is the third consecutive day Paytm's shares have hit the lower circuit.
Over the last three trading sessions, Paytm's shares have seen a significant decline of 42.4 percent, resulting in investors losing Rs 20,500 crore. Both BSE and NSE have reduced the lower circuit limit for Paytm shares from 20 percent to 10 percent. The Enforcement Directorate has indicated that if there are any fresh allegations of misappropriation of funds, it will initiate a money laundering inquiry against Paytm Payments Bank, according to Revenue Secretary Sanjay Malhotra. This has further escalated the crisis faced by Paytm.
In response, One97 Communications clarified that the ED is not conducting any inquiry against the associates or the founder and CEO of the company. The Reserve Bank of India (RBI) has taken action by prohibiting Paytm Payment Banks (PPBL) from accepting deposits or top-ups, prepaid instruments, wallets, and FASTags in any customer's account after February 29, 2024. However, any interest, cashback, or refund may still be credited to Paytm Payments Bank Limited customers at any time. Paytm's shares experienced a sharp decline following this regulatory action by the RBI.
(Note: This information pertains to share performance and does not constitute investment advice. It is advisable to consult with a knowledgeable or expert professional before making any investment decisions.)