In Tuesday’s trading, shares of One97 Communications, the parent company of Paytm, reached new all-time lows as investors appeared to be pessimistic on the stock.
On the BSE, the parent company of payment platform and financial services aggregator fell as much as 3% to a new 52-week low of Rs 546.65.
Paytm’s stock has lost approximately 75% of its value since its IPO price of Rs 2,150, according to its latest low. In November 2021, the company was listed on the stock exchanges.
The company’s market capitalisation has plummeted by more than Rs 1.03 lakh crore since its IPO. The company’s market cap was barely above Rs 35,500 crore at the time of writing this piece, compared to Rs 1.38 lakh crore at the time of its IPO.
Because of some regulatory issues, the Reserve Bank of India (RBI) stopped Paytm Payments Bank from onboarding new customers with immediate effect on March 11, 2022. Paytm, the world’s largest digital payments company, uses it to process transactions.
Macquarie, a global brokerage group, cut Paytm’s target price from Rs 700 to Rs 450 last week.
“The recent developments significantly reduce the probability of getting a banking license to lend,” it said.