Shares of One97 Communications Limited, the parent company of digital payments firm Paytm, hit the lower circuit of 20 percent for the second consecutive trading session on Friday.
Paytm shares fell 20 percent to Rs 487.20 on the National Stock Exchange (NSE). With this, Paytm shares have hit a 52-week low and are down 40 percent in just two trading sessions.
While Paytm claimed that it will be able to overcome the difficulties due to the action taken by the RBI against Paytm Payments Bank Limited, several analysts have indicated that the move will hurt Paytm’s operations.
In an earlier stock exchange filing, Paytm indicated that RBI’s move against its associate could have a Rs 300 crore to Rs 500 crore impact on annual EBITDA in a worst-case scenario.
The development comes even after Paytm’s top management held an analyst call on Thursday, revealing the next steps regarding how the digital payments firm plans to navigate through the challenges. While founder and CEO Vijay Shekhar Sharma said the move was “more of a speed bump” and that “we will be able to see to the same in the next few days”.
In a post on social media platform X on Friday, Sharma assured Paytm users that “your favorite app is working, will keep working beyond 29 February as usual”.
Despite the assurances and Paytm’s damage-controlling measures, several analysts have downgraded the stock, citing the impact of RBI’s action against Paytm Payments Bank.
Jefferies, JP Morgan, JM Financial, and Axis Capital are among the brokerages that have downgraded the Paytm stock, following RBI’s action.
