Paytm tumbles 3% on ₹241 Crore equity sale

5 Mar 2024 , 12:45 PM

One 97 Communications Ltd., the parent company of Paytm, saw its shares drop by around 3% early on March 5 following the transfer of about 58.2 lakh shares, or 0.92% of the stock.

The stock was trading on the NSE at ₹407.00 at 12.40 pm. Paytm has experienced a drop of more than 7% in the past month, mitigating the significant losses that ensued from the RBI’s decision to significantly reduce the operations of its banking division.

A CNBC TV-18 report states that at an average price of ₹414 a share, 0.92% of stock valued at ₹241 crore changed hands. At this moment, Moneycontrol was unable to independently authenticate the buyer and seller.

The Paytm Payments Bank was subject to significant business restrictions by the RBI on January 31, claiming a protracted pattern of non-compliance by the Paytm promoters. In order to ‘enable the reconstitution of the board,’ bank founder Vijay Shekhar Sharma resigned from the board on February 26.

The regulatory issues, which have cast doubt on the payments bank’s viability, reportedly caused Paytm’s UPI market share to drop to 11% in February.

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