Paytm rebounds 19% from record low amid heavy volumes

The stock hit a new low at Rs 395.50 in intra-day deals on Tuesday, and then rebounded into the positive zone for the first time in last four trading days.

Shares of One 97 Communications (OCL), parent of fintech giant Paytm, bounced back 8 per cent to Rs 472.50 from its record low of Rs 395.50 on the BSE in Tuesday’s intra-day trade amid heavy volumes.

The stock fell below its previous low of Rs 438.35 touched on November 23, 2022. In the past four trading sessions, the stock tanked 48 per cent from level of Rs 761 on January 31, after the Reserve Bank of India (RBI) ordered Paytm Payments Bank (PPBL), associate company of OCL, to cease major banking services after February 29.

The RBI announced that no further deposits, credit transactions, or top-ups will be permitted in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Card (NCMC) cards, etc., after February 29, 2024, except for interest, cashback, or refunds that may be credited at any time.

First time in the past four trading days, Paytm shares are trading in green, on the back of multiple news flows including Startup founders writing to the Prime Minister, Finance Minister & RBI to review regulatory action on PPBL.

At 10:25 am; Paytm was quoting nearly 7 per cent higher at Rs 467.75, as compared to 0.26 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter more than doubled today. A combined 47.82 million equity shares changed hands on the NSE and BSE, the exchange data shows.

Morgan Stanley on Friday, February 2, had bought 5 million shares of One 97 Communications for Rs 244 crore through an open market purchase. Morgan Stanley through its affiliate Morgan Stanley Asia (Singapore) Pte - ODI picked up shares of Noida-based Paytm's parent firm OCL on the National Stock Exchange (NSE). The foreign investor acquired shares at a price of Rs 487.20 per share.

Meanwhile, there is buzz in the market that Mukesh Ambani will acquire Paytm wallet. However, the company clarified that the news item is speculative, baseless and factually incorrect. “We have not been in any negotiations in this regard. We have been informed by PPBL, our associate company, that they also have not been in any negotiations in this regard,” OCL said in an exchange filing.

OCL on Monday also denied any investigation by the Enforcement Directorate on the company, its associates and management. “We would like to reiterate that the Company and its associate PPBL are not the subject matter of any such investigation. Such media reports are entirely misleading, baseless and malicious, which harm the interests of all our stakeholders,” the company said.