The stock price of one 97 communication, Paytm parent company, with a 12 percent tank to ₹ 685 a, down about 70% of the price of the problem ₹ 2,150 per share.
On Friday, the Reserve Bank of India (RBI) directed Paytm Payment Bank to stop taking new customers with direct effects, quoting “material supervision problems observed in the bank.”
Paytm Payments Bank has also been directed to appoint an audit company to conduct a comprehensive audit of the IT system, RBI said in a statement.
Paytm made his debut in November last year in the largest initial public offering in the country. But the list was also one of the worst witnessed by the Indian stock market, including Monday’s losses, Paytm shares had fallen almost 70 percent since their debut.
Indeed, Paytm has witnessed more erosion of ₹ 57,100 Crore to ₹ 44,294 Crore from since the first day 1 market capitalization ₹ 1,01,399.72 Crore on November 18. About 70 percent of its value has been removed far compared to the beginning. Public offers at the price of publishing has searched for rating around ₹ 1.39 lakh crore.
Analysts at ICICI Securities told the Reuters news agency, the digital payment startup must increase its efforts to increase involvement with existing user base to compensate for any adverse effects of embargo in new users.
“Now, expect moderation on onboarding new users and adverse effects on gradual payment income … We revised our target price to ₹ 1,285 (previously ₹ 1,352),” said the research company, added that it might delay the company’s plan to file a conversion to the bank Small finance.
Reuters reported, analysts at Macquarie Research expect a significant impact on PAYTM brands and customer loyalty. They said that recent developments would substantially reduce the opportunity for Paytm Payments Bank to improve to small financial banks.
The post Paytm Share Sink 12% to ₹ 685, down 70% of the problem price ₹ 2,150 first appeared on Businessely.com.
