Paytm shares: On Monday, One 97 Communications Ltd. (Paytm) shares were locked at their lower circuit limits of 10% for the third consecutive session in response to a media report indicating that the RBI was thinking of revoking the license of Paytm Payment Bank. The CEO and company were not involved in anti-money laundering activities, despite the management’s clarification to the media about speculative articles about an ED investigation. However, this did not raise eyebrows.
The price band for Paytm stock was locked at Rs 438.35, down 10%, with a revised price range of 10% from 20%. As a result, the scrip has dropped 43% over the previous three sessions. According to a Bloomberg report, the RBI may decide to revoke Paytm Payments Bank’s license as soon as next month. According to a different report, traders were advised by the trader association CAIT to switch from Paytm to other payment methods.
In response to the RBI restrictions, a few brokerages have drastically lowered their target PAytm prices. The stock was downgraded by Jefferies to “Underperform,” and its target price was lowered to Rs 500 per share. Macquarie lowered its target price per share to Rs 650. The last time Motilal Oswal took a “watchful stance” on Paytm’s business model resilience and its capacity to handle the erratic macro and regulatory landscape, it was. It recommended setting a goal of Rs 575 on Paytm.
Paytm released an explanation.
Paytm released an explanation. “To clear up any confusion, we firmly reject any participation in any anti-money laundering initiatives. Paytm stated, “We have adhered to Indian laws and will continue to do so. We also take regulatory orders very seriously.”
Paytm stated in a filing to stock exchanges that the Enforcement Directorate is not looking into the fintech company, its founder, or its CEO in relation to, among other things, money laundering. Paytm stated that in the past, certain users and merchants on its platforms were the focus of investigations, and in those cases, it worked with the authorities.
