Shares of One97 Communications Limited (OCL), which owns Paytm brand, plummeted 20% on February 1 as the RBI directed Paytm Payments Bank Limited (PPBL) to stop accepting deposits or top-ups in any customer accounts, wallets, FASTags and other instruments after February 29.
The stock cracked 20% to ₹608.80 — its lower circuit limit — on the BSE. At the NSE, it tumbled 19.99% to hit the lowest trading permissible limit for the day of ₹609. The company's market capitalisation (Mcap) also eroded by ₹9,646.31 crore to ₹38,663.69 crore in early trade. However, any interest, cashbacks, or refunds may be credited back to customers anytime.
“The direction follows persistent non-compliances and continued material supervisory concerns,” the Central bank said in a statement.
RBI also said the 'nodal accounts' of OCL and Paytm Payments Services are to be terminated at the earliest, in any case not later than February 29, 2024.
OCL, which owns Paytm brand, holds a 49% stake in PPBL but classifies it as an associate of the company and not as a subsidiary. The RBI's order will have an impact of ₹300-500 crore on annual operational profit of the company.
"Depending on the nature of the resolution, the company expects this action to have a worst case impact of ₹300-500 crore on its annual EBITDA going forward. However, the company expects to continue on its trajectory to improve its profitability," Paytm said in a regulatory filing.
Published - February 01, 2024 10:59 am IST
