The shares of One97 Communications Limited, the parent company of digital payments firm Paytm, dropped significantly on Tuesday.
Paytm shares fell 10 per cent by 42.20 points to Rs 380.00 apiece (13 Feb, 3:03 pm IST). This time yesterday, the price of shares of the Vijay Shekhar Sharma-led firm were are Rs 431.50 a piece.
More trouble for the embattled
Following the much talked discussed regulatory action on its banking arm, brokerage firm Macquarie downgraded Paytm's stock to "underperform" status. Moreover, Macquarie significantly reduced the price target for Paytm shares to a street-low of Rs 275, down from the previous Rs 650.
In addition, RBI also clarified and reiterated that there will be no change in it's approach towards the company.
As a fallout of the development Manju Agarwal, a member of the board at Paytm Payments Bank, tendered her resignation on February 1, citing personal commitments as the primary reason for her departure.
The hit that jolted Paytm
Things started going awry for the company, when the Central Bank imposed restrictions on Paytm Payments Bank, stopping it from offering additional banking services starting from March 2024. This action was taken due to concerns about regulatory norm violations. After February 29, Paytm Payments Bank was not allowed to accept deposits, conduct credit transactions, or provide top-ups for customer accounts, prepaid instruments, wallets, FASTags, and NCMC (National Common Mobility Cards), among other services.