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Paytm recovers 6% from day's lows after Co denies ED freeze on accounts

The HPZ Token scam scam, allegedly operated by 10 Chinese nationals, involved the collection of over Rs 2,200 crore from investors across 20 states

Paytm

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SI Reporter New Delhi

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Shares of financial technology (fintech) giant One 97 Communications (Paytm) fell 8.95 per cent to a day's low of Rs 773.05 on the National Stock Exchange (NSE) during intra-day deals on Friday, January 24, 2025. The fall in the company’s stock price follows news that the Enforcement Directorate (ED) has allegedly frozen approximately Rs 500 crore in virtual accounts of eight payment gateways, including Razorpay, PayU, Easebuzz, and Paytm, as part of its investigation into one of India’s largest cryptocurrency scams, the HPZ Token scam, according to a report by The Times of India. 
However, Paytm shares trimmed their initial losses and recovered 6.15 per cent from the day's low after the company refuted the claim. At around 12:40 PM on Friday, Paytm shares were quoted at Rs 820.65 on the NSE, down 3.35 per cent from their previous close of Rs 849.10 apiece. In comaprions, the benchmark equity indices, NSE Nifty50 and BSE Sensex, were trading higher on Friday. The Nifty50 was trading at 23,232.30, up 0.12 per cent, while the 30-share Sensex was up 117 points at 76,638 levels.
 
 
Paytm, in a regulatory filing on the BSE, said, "We confirm that we have not received any such new notice, communication, or query from the Enforcement Directorate regarding the matter mentioned in the media articles. The information published is factually incorrect and misleading, and we had not received any query from the media prior to the publishing of this news article."
  
"Additionally, we would also like to take this opportunity to clarify that contrary to media reports there has been no probe on the Company or its subsidiaries, the ED’s probe is on third-party merchants," it added. 
  
One 97 Communications serves as a digital ecosystem for consumers and merchants. The company offers a digital payments platform for use cases such as online money transfers, in-store merchant payments, and bill payments. The company also provides commerce and cloud services, such as ticketing and advertising, as well as technology-led financial services, including loans, insurance, and wealth management, offered through financial partners.
 
As of January 24, 2025, the company boasts a market capitalisation of Rs 52,213.78 crore on the NSE.
 
Paytm shares were at their all-time high of Rs 1,961.05 on November 18, 2021, whereas their all-time low of Rs 310 was recorded on May 9, 2024.
 
The fintech company's shares were quoted at their 52-week high of Rs 1,062.95 on December 17, 2024, while their 52-week low of Rs 310 was recorded on May 9, 2024.
 
Paytm share price has dropped 16 per cent in the last one month, while it has surged 80 per cent in the last six months.
 

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First Published: Jan 24 2025 | 1:21 PM IST

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