Paytm Stock Under Pressure Despite Denying ED Investigation Reports
Market shares of troubled fintech One 97 Communications or Paytm have fallen sharply by another 10 per cent right after RBI’s diktat banning of Paytm Payments Bank transactions and lending facilities.
![Paytm Stock Under Pressure Despite Denying ED Investigation Reports](https://www.psuconnect.in/sdsdsd/Paytm_Stock_Under_Pressure.jpg)
The shares of the fintech company plunged to stand at Rs 438.35 on BSE losing 42.4 percent of its value in the last three trading sessions as the regulatory crisis has now escalated with the fresh allegations of money laundering and investigation by the ED [Enforcement Directorate]. The stock has lost 42.4 % of its value or Rs 20,500 crore in market capitalization.
Previous losses were trading with 20% losses which got further reduced by 10 % more in recent sessions. But as per a recent Company statement, it has been cleared that ‘Neither the company nor its founder and CEO are being investigated by the ED regarding inter alia money laundering. Further, RBI had previously warned ED about possible money laundering and know-your-customer [KYC] violations at Paytm.
Read Also : R.K. Chaudhary, CMD, NHPC met Chowna Mein, Hon’ble Dy. CM, Arunachal PradeshPaytm Payments Bank, 49% owned by Paytm has been banned by RBI from discontinuing most of its operating functions by the end of 29th Feb 2024, It has also asked PPBL to not engage with Paytm’s other business units for Nodal accounts.
Read Also : State Coal Minister inaugurates new solar plant at CCL’s Piparwar AreaThe company on the other hand has guided that the regulatory trouble could impact EBITDA by Rs 300-500 crore [ which is 20-30% of FY25 earnings]. Analysts expected the hit could be higher at 45% as there could be an additional 20% hit from a sustained lending business slowdown.
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