Experiencing a rebound following three consecutive declines, Paytm’s fintech platform witnessed an impressive gain on Thursday, with shares soaring nearly 10%. Its parent company, One97 Communication, also saw a significant increase of 43.35 points, or 9.61%, reaching 494.50. This upturn comes after a remarkable surge of nearly 10% the previous day.
Today, Paytm shares reached as high as 496.25 rupees, recovering from a steep decline of almost 42% over the preceding Thursday, Friday, and Monday trading sessions. The platform’s stock witnessed consecutive drops of 20%, 20%, and 10% respectively, prompted by RBI’s order on Wednesday to cease fresh deposits and top-ups starting March 1. This directive resulted in a staggering $2.5 billion loss in market valuation for the Vijay Shekhar Sharma-led platform.
RBI cited “persistent non-compliance and continued material supervisory concerns” as the rationale behind its decision. Amidst these developments, reports emerged of Vijay Shekhar Sharma engaging with RBI officials and Finance Minister Nirmala Sitharaman to articulate his stance and seek potential concessions.
Sharma has requested an extension beyond the February 29 deadline from RBI and sought clarity on transferring its license for the wallets business and the digital highway toll payment service, Fastag. Paytm has assured its users of uninterrupted services post the RBI deadline and is reportedly in talks with other banks to facilitate the same.
