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Paytm share price slides 9 per cent in early trade. Will it decline further?
Paytm share price: One97 Communications, the parent company of Paytm, saw its stock decline by nine per cent in early trade at ₹344.80
Paytm share price continued to slide in the stock market on Wednesday. One97 Communications, the parent company of Paytm, saw its stock decline by nine per cent in early trade at ₹344.80. The stock had opened at ₹353.50 after closing at ₹380.35 on the previous day. The financial crisis-hit fintech firm's market cap stood at ₹21,899 crore.
On Tuesday, the shares of One97 Communications had tanked 10 per cent after the Reserve Bank of India (RBI) had ruled out any review of its action against Paytm Payments Bank.
“At the moment let me say very clearly there is no review of this (PPBL) decision. If your are expecting a review of the decision, let me very clearly say there is (going to be) no review of the decision,” central bank's governor Shaktikanta Das had said on Monday.
ALSO READ: RBI’s top priority is to protect Paytm customers: Governor Shaktikanta Das
This is the first time that the shares of crisis-hit One97 Communications tumbled below the ₹400 threshold on both the bourses.
The stock tumbled 10 per cent each to close at ₹380 and ₹380.35 apiece -- its lower circuit limit as also a 52-week low level -- on the NSE and BSE respectively.
ALSO READ: Willing to work with ‘important player’ Paytm: Axis Bank CEO Amitabh Chaudhry
In volume terms, 1.14 crore equity shares were traded on the NSE, while 15.92 lakh shares were traded on the BSE, during the day.
Macquarie Group Ltd said that Paytm is potentially fighting for its survival after the RBI action.
“Paytm faces a serious risk of customer exodus which significantly jeopardises its monetization and business model,” the brokerage firm's analysts Suresh Ganapathy and Punit Bahlani, wrote in a note as seen by Bloomberg.
They downgraded their rating on One 97 Communications Ltd., the parent of Paytm, to underperform from neutral, and slashed the price target to 275 rupees from 650.
The RBI action has sharply hit Paytm’s shares, which have erased about $3 billion of market value since the curbs were announced after the close of trading hours on January 31.
