Paytm’s share price fell 5 percent in morning trade on BSE on Thursday, February 15, to hit a fresh 52-week low and was on track to extend the losses into the third consecutive session, after the company confirmed receiving notices of the Enforcement Directorate. (ED). Paytm’s share price opened at ₹325.30 against the previous closing of ₹342.35 and soon fell 5 percent to the 52-week low of ₹325.30. Around 10:10 am, the stock was trading 4.63 percent lower at ₹326.50.
Paytm’s share price has declined by 10 percent in each of the previous two sessions.
Also Read: Paytm share price cracks 10% to hit 52-week low; analysts say avoid the stock
Paytm’s parent company One97 Communication confirmed on Wednesday that it has received notices from the Enforcement Directorate (ED) seeking information about customers who have done business with its group companies.
Also Read: Paytm parent confirms ED action
The Vijay Shekhar Sharma-led company has informed the stock exchanges in a filing that the company has provided the necessary information and documents to the investigating agency.
“The company and its partner have continued to provide such information, documents and explanations to the authorities as they require,” the company said.
The clarification came a day after Mint reported that the ED had started a probe into suspected breaches at Paytm Payments Bank following a referral from the Reserve Bank of India (RBI).
Also Read: Paytm Bank gets a knock on ED’s door
Paytm’s share price has witnessed sharp selling pressure this month. At the current market price of ₹325.30, the stock lost 57 percent in February, after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from carrying out certain operations following a system audit report and a subsequent compliance report by external auditors.
RBI has ruled out a review of its decision in the Paytm Payments Bank case.
Also Read: No review on action against Paytm Payments Bank: RBI govt Shaktikanta Das
Several brokerage firms downgraded the stock after the RBI action. In a recent report, global brokerage firm Macquarie also downgraded the stock to “underperform” and significantly lowered its target price to ₹275 per share from an earlier target price of ₹650, citing the company’s sharp reduction in revenues across various segments.
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Published: 15 Feb 2024, 10:22 IST