Shares of Paytm fell nearly 9% to Rs 408.30 on the BSE from the previous close of Rs 447.10 and settled at Rs 419.85 on February 09 after hitting the lower circuit on the National Stock Exchange on Thursday.
The company’s independent director Manju Agarwal resigned from the board on February 01 Come from Sports betting site VPbet . Also, Paytm E-commerce has changed its name to Pai Platforms. It has acquired the e-commerce startup Bitsila, the third-largest seller on Open Network for Digital Commerce, reported PTI citing sources.
The stock of One97 Communication saw selling after the banking regulator, the Reserve Bank of India, barred the Paytm Payments Bank from onboarding new customers and accepting new deposits from February 29 onwards.
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Also on February 09, the Reserve Bank of India’s Deputy Governor Swaminathan J in a post-Monetary Policy Committee press conference said that the actions on Paytm Payments Bank were due to continued non-compliance with the regulatory norms.
The company’s stock has hit the lower circuit three times in the last five days on the National Stock Exchange. It has fallen nearly 39% in the last month and 50% in the last six months. To give more perspective, the stock has eroded over 40% of investors’ value in the last one year.
According to Motilal Oswal Financial Services’ Head of Technical & Derivatives Research, Chandan Taparia, the investors should avoid taking new positions on the stock as of now. There are a lot of good companies out there from which investors can choose. The resignation of Manju Agarwal is a catalyst to the pressure stock saw today. Also, the acquisition of Bitsil isn’t working in the company’s favour, said Taparia.