Paytm, whose price band has been revised to 10 per cent from 20 per cent, was locked at Rs 438.35, down 10 per cent.
Shares of One 97 Communications Ltd (Paytm) were locked at their lower circuit limits of 10 per cent for the third straight session on Monday following a media report that suggested the RBI was considering canceling Paytm Payment Bank’s licence. The management clarification on speculative media articles regarding an ED investigation and no involvement of the company and its CEO in anti-money laundering activities, could not lift the counter.
The Paytm stock, whose price band has been revised to 10 per cent from 20 per cent, was locked at Rs 438.35, down 10 per cent. With this, the scrip has fallen 43 per cent in the last three sessions. A Bloomberg report suggested that the RBI was considering scrapping the license of Paytm Payments Bank as early as next month. Another report said the trader body CAIT advised traders to migrate from Paytm for other payment options.
A couple of brokerages have cut target prices of PAytm sharply following the RBI restrictions. Jefferies downgraded the scrip to ‘Underperform’ and cut its target price to Rs 500 per share. Macquarie reduced its target price to Rs 650 per share.
Motilal Oswal was last having a ‘watchful stance’ on the resilience of Paytm’s business model and its ability to navigate the uncertain regulatory and macro environment. It suggested a target of Rs 575 on Paytm.
Paytm came out with a clarification. “We would like to set the record straight and deny any involvement in anti-money laundering activities. We have and continue to abide by Indian laws and take regulatory orders with utmost seriousness,” Paytm said.
