Paytm shares crash down 20% amid RBI strict action
The associate company of One97 Communication has been broke down when shares of the same were plunged to 19.99% to Rs 609 on the NSE. It fell 20% to its lower circuit limit of Rs 608.80 on the BSE.
The shares of Paytm have fallen 20 per cent post RBI’s strict action announcement which barred the Payment Bank from taking deposits and doing credit transactions. The company has been hardly impacted by the rigidity shown by authority.
The associate company of One97 Communication has been broke down when shares of the same were plunged to 19.99% to Rs 609 on the NSE. It fell 20% to its lower circuit limit of Rs 608.80 on the BSE.
Moreover, the market capitalization of the company has come down to Rs 38,664 crore in early trade after many brokerages downgraded their rating on the stock. As per analysts, RBI’s actions directly impact the wallet business and profitability of merchant payments business and could degrade the EBITDA margin by 20-30%.
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In the meantime, the payments bank is going to stop originating new loans for a few weeks till the operational issues are sorted and the company will now have to link its quick response [QR] codes to any other sponsored bank.
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In an exchange filing, the company asserted the RBI action badly impacted its annual earnings before interest, taxes, depreciation, and amortization [EBITDA] by Rs 300-500 crore. Yet the profitability of the company will continue to improve.
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