Paytm's NSE shares dropped 20% to Rs 487.20.
According to a report on India Today, for the second straight trading session, shares of One97 Communications, the parent company of digital payments platform Paytm, closed below the 20% mark on February 2, 2024.
Paytm's stock on the NSE dropped 20% to Rs 487.20 As a result, its stock has dropped 36% in the last two trading days and has reached a 52-week low.
Although Paytm claims that it would be able to get past the challenges brought on by the RBI's action against Paytm Payments Bank, a number of analysts suggest that the move will negatively impact Paytm's business.
This event occured just after Paytm's top management disclosed the company's next initiatives for overcoming the obstacles during an analyst call on Thursday. Vijay Shekhar Sharma, the company's founder, and CEO, countered that "We will be able to see to the same in the next few days." and described the action as "more of a speed bump".
Sharma reassured Paytm users that "Your favourite app is working, will keep working beyond 29 February as usual" in a post on X.
Numerous analysts have downgraded the company, citing the impact of RBI's action against Paytm Payments Bank, despite the promises and Paytm's damage control measures. After the RBI's move, brokerages like Jefferies, JP Morgan, JM Financial, and Axis Capital downgraded the Paytm shares.