Shillong, February 2: Shares of One97 Communications Limited, the parent company of Paytm, witnessed a 20% decline for the second consecutive day, triggering the lower circuit during Friday’s trading session.
As per India Today, on the National Stock Exchange (NSE), Paytm shares plummeted to Rs 487.20, marking a 5-week low and a 40% decrease in just two trading sessions.
Despite Paytm’s assertion that it can overcome challenges stemming from the RBI’s actions against Paytm Payments Bank Limited, analysts express concerns about potential disruptions to Paytm’s operations. In a prior stock exchange filing, Paytm acknowledged that the RBI’s actions could have an annual EBITDA impact ranging from Rs 300 crore to Rs 500 crore in a worst-case scenario.
India Today stated that even after a management-led analyst call outlining the company’s strategy to navigate challenges, Paytm’s stock faced downgrades from several prominent brokerages, including Jefferies, JP Morgan, JM Financial, and Axis Capital. Founder and CEO Vijay Shekhar Sharma characterized the situation as a “speed bump,” expressing confidence in overcoming the challenges in the coming days.
In an effort to reassure users, Sharma took to social media platform X, assuring Paytm’s continued functionality beyond February 29. However, the stock downgrades persist, underscoring the impact of the RBI’s actions against Paytm Payments Bank on market sentiment.”