Paytm share price drops 5% to hit 52-week low as it confirms receiving ED notice
Paytm share price fell 5 per cent to hit a fresh 52-week low of ₹325.30. The stock has dropped 10 per cent in each of the previous two sessions.
Paytm share price fell 5 per cent in morning trade on BSE on Thursday, February 15, to hit its fresh 52-week low and was on course to extend the losses into the third consecutive session, after the company confirmed receiving notices from the Enforcement Directorate (ED). Paytm share price opened at ₹325.30 against the previous close of ₹342.35 and soon fell 5 per cent to the 52-week low level of ₹325.30. Around 10:10 am, the stock traded 4.63 per cent lower at ₹326.50.
Paytm share price has dropped by 10 per cent in each of the previous two sessions.
Paytm's parent company One97 Communication confirmed on Wednesday that it has received notices from the Enforcement Directorate (ED) requesting information on customers who have conducted business with its group companies.
Also Read: Paytm parent confirms ED action
The Vijay Shekhar Sharma-led company informed the stock exchanges in a filing that the company has furnished the necessary information and documents to the investigating agency.
“The company and its associate have continued to provide such information, documents and explanations to the authorities as is being required by them," said the company.
The clarification came a day after Mint reported that the ED has initiated a probe into suspected breaches at Paytm Payments Bank following a referral from the Reserve Bank of India (RBI).
Also Read: Paytm Bank gets a knock on the door from ED
Paytm share price has been witnessing acute selling pressure this month. At the current market price of ₹325.30, the stock lost 57 per cent in February, after the Reserve Bank of India (RBI) barred Paytm Payments Bank (PPBL) from conducting certain operations following a system audit report and subsequent compliance validation report of external auditors.
RBI has ruled out a review of its decision in the case of Paytm Payments Bank.
Several brokerage firms have downgraded the stock after the RBI action. In a recent report, global brokerage firm Macquarie also downgraded the stock's rating to 'underperform' and significantly lowered its target price to ₹275 per share from an earlier target price of ₹650, citing the company's sharp reduction in revenues across various segments.
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