Paytm shares hit all-time low, trade 75% below listing price

Shares of Paytm’s operating company One97 Communications touched fresh lifetime lows in Tuesday’s trade and continued to remain under pressure. The stock closed 22.20 points or 3.92% down at Rs 543.50 in Tuesday’s trading session on the National Stock Exchange.

One97 Communications has lost over 32% value in the past month owing to continuous negative news flow. The stock has lost over 74% from the issue price of Rs 2,150.

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Since its listing, One97 Communications has erased more than Rs 1.03 lakh crore in market capitalisation. On Tuesday, the company’s market capitalisation was Rs 35,247 crore against Rs 1.38 lakh crore at the time of its IPO.

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The Reserve Bank of India (RBI) on March 11, 2022, barred Paytm Payments Bank from taking on new customers with immediate effect because of certain supervisory concerns. Paytm Payments Bank processes transactions for Paytm.

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The central bank has directed Paytm Payments Bank to appoint an audit firm to conduct an audit of its IT system. Paytm Payments Bank will require specific permission from the RBI to restart accepting new customers after a review of the audit. Paytm Payments Bank has said that it was taking immediate measures to comply with RBI directions and was looking to appoint an external auditor to conduct a comprehensive audit of its IT systems.

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The RBI action does not affect any existing customers of Paytm Payments Bank, who can continue to use all banking and payment services without interruption. All existing users of Paytm UPI, Paytm Wallet, Paytm FASTags and bank accounts can continue to use these features, including debit cards and net banking, the company said in an exchange filing.