Paytm share price recovers, climbs 6.5% after hitting fresh all-time low
Paytm share price: Shares of One 97 Communications, the parent company of payments platform Paytm, climbed over 6.5 per cent in the late morning trade on Wednesday after registering a steep fall in the previous two sessions.
The stock climbed 6.53 per cent to Rs 631.15 apiece on the National Stock Exchange (NSE) while on the BSE, it rose 6.51 per cent to Rs 630.95. It had briefly touched a fresh all-time low of Rs 572.25 on BSE and Rs 572.00 on NSE earlier in the session.
At 11:48 am, the Paytm scrip was trading at Rs 624.70, up Rs 32.30 (5.45 per cent), while on NSE, it was at Rs 623.90 per share, up Rs 31.45 (5.31 per cent), data from the respective stock exchanges showed. The market capitalisation stood at Rs 40,513.31 crore, as per the information available on the BSE.
In the past two sessions, Paytm shares had tumbled over 23.5 per cent after the RBI on Friday asked Paytm Payments Bank to stop opening new accounts amid “material supervisory concerns” observed in the bank.
The stock declined 23.54 per cent on the BSE to end at Rs 592.40 on Tuesday and on NSE it fell 23.56 per cent to Rs 592.45. In two days, the company’s market valuation plunged by Rs 11,809.43 crore to Rs 38,418.57 crore on the BSE.
“This action is based on certain material supervisory concerns observed in the bank,” the Reserve Bank of India (RBI) said last Friday.
Meanwhile, PPBL said it is taking immediate steps over the RBI move. “PPBL remains committed to working with the regulator to address their concerns as quickly as possible. PPBL’s existing customers can continue to enjoy the benefits of seamless banking and digital payments services without interruption,” it said, adding, “The savings of existing users in their PPBL account, their fixed deposits with partnered banks and the balance maintained in their Paytm Wallet, FASTag or Wallet Card and UPI services are completely safe and functional.”
This apart, on Tuesday, Munish Varma, managing partner at SoftBank, resigned from the board of One97 Communications. Varma was a non-executive and non-independent director on the board of the company. The resignation is in keeping with SoftBank’s stated practice of stepping down from the boards of investee companies post a listing.
Following the resignation of Varma, Vikas Agnihotri, his alternate director, also stepped down, Paytm said in an exchange filing.
SoftBank currently holds a 17.4 per cent stake in Paytm, recent shareholding data from BSE shows.