Paytm’s shares hit an all-time low plunging below the ₹700-mark after RBI pulls up its payments bank
- Shares of One 97 Communications dipped nearly 12% in the early morning trade on Monday.
- The development comes after the RBI barred
Paytm Payments Bankfrom opening any new account from March 11 onwards.
- Global investment bank Macquarie had slashed Paytm’s target price to ₹700 in February this year.
It is important to note that Paytm Payments Bank is not included under the public offering of One 97 Communications, instead it is an associate entity. Even though not public, Paytm Payments Bank is the backbone behind several Paytm offerings including insurance, digital payments and lending.
In the last 3 weeks, we've seen $PAYTM.NSE underperforming BSE IPO INDEX. This sort of divergence indicates the inherent weakness before any news. It is better to avoid until stock changes its primary trends, which is a higher low and break above the previous high(highlighted zone).— (@Raj_Sharma) March 14, 2022
The shares of Paytm were trading at ₹682 at 9:34 a.m., representing a 11.92% dip from the previous close of ₹774.80 on Friday evening. The company is currently sitting on a market cap of ₹44,287 crore ($5.7 billion), which is nearly four times less than the $19.9 billion market cap the company was accorded during its initial public offering (IPO).
The central bank had banned Paytm from onboarding new customers after noticing certain “material supervisory concerns”. RBI has directed Paytm Payments Bank to appoint an information technology (IT) audit firm to conduct a comprehensive system audit of its IT system.
It is important to note that Global investment bank Macquarie had slashed Paytm’s target price to ₹700, from previous ₹1,200 in November 2021 and ₹900 in January 2022, in February this year.
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