Last update: February 15, 2024 11:45 IST
Paytm stock price: RBI's drastic action on Paytm Payments Bank has sent Paytm's stock price plummeting. It hit a record low for the third consecutive day on Thursday (February 15) despite the company making it clear that it was fully supporting the clarifications of the ED and other authorities.
The new revision in circuit limit comes a day after Paytm shares were fixed at 10% lower circuit limit.
BSE said the price bands have been revised from existing levels with effect from February 15, 2024. Previously, the circuit limit was modified from 20% to 10%.
The circuit is usually revised based on the last traded price (LTP) of the stock. Whenever the value of a stock falls sharply, the exchange lowers the circulation limit for that particular stock.
Paytm has lost around Rs 27,000 crore, or 57% of its value, in the last 11 days since its troubles began after the RBI imposed a ban on payments banks that house Paytm wallets.
In an exchange filing last night, the fintech admitted that over time it has received notices and requests for information, documents and clarifications from the ED in relation to customers who may have transacted with the company.
“We also want to make it clear that our affiliate, Paytm Payments Bank Limited, does not conduct international outward transfers,” it said.
What do investors need to know?
Considering the way Paytm stock price has fallen over the past few days, experts suggest retail investors to stay away from the stock until the regulatory hurdles are over. Earlier, there were reports that the RBI was planning to revoke the license of Paytm Payments Bank.
Global brokerage Macquarie sees the stock price falling to Rs 275. This is the biggest weakness for Paytm right now.
“We have reduced revenue significantly (60-65% compared to FY25/26E) by reducing revenue from both our payments and distribution businesses. Moving a payment bank customer to another bank account or moving the associated merchant account to another bank account requires re-performing Know your customer (KYC) based on channel verification with the partner, which requires migration within RBI's February 29 deadline. It indicates that it will be a difficult task. said Macquarie analyst Suresh Ganapathy.