Paytm’s stock drops by 5% more : After the company reported receiving notifications from the Enforcement Directorate (ED), the Paytm share price plunged 5% in morning trade on Thursday, February 15, reaching a new 52-week low and likely continuing to lose for a third session in a row. Against the previous closing of ₹342.35, the Paytm share price began at ₹325.30. However, it quickly dropped 5% to ₹325.30, the 52-week low. At roughly 10:10 a.m., the stock was trading at ₹326.50, 4.63 percent down.
In the last two sessions, the price of Paytm’s shares has decreased by 10%.
One97 Communication, the parent company of Paytm, announced on Wednesday that it had received notices from the Enforcement Directorate (ED) asking for details about clients who had done business with its group companies.
The business, headed by Vijay Shekhar Sharma, notified the stock exchanges through a filing that it had given the investigating agency all the information and materials it needed.
According to the company, “the associate and the company have continued to provide the authorities with the information, documents, and explanations that they require.”
The explanation was given one day after Mint revealed that the Reserve Bank of India (RBI) had referred the ED to begin an investigation into possible violations at Paytm Payments Bank.
This month, there has been intense selling pressure on the Paytm share price. The stock, which is currently trading at ₹325.30, fell 57% in February after the Reserve Bank of India (RBI) prohibited Paytm Payments Bank (PPBL) from carrying out specific activities in response to a system audit report and an external auditor’s compliance validation report.
A reconsideration of the RBI’s ruling in the Paytm Payments Bank case has been dismissed.
Several brokerage firms have downgraded the stock after the RBI action. In a recent report, global brokerage firm Macquarie also downgraded the stock’s rating 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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