MUMBAI:
RBI
's Wednesday diktat on
Paytm Payments Bank
is expected to weigh on the stock price of its parent, One97 Communications, which is still 65% down from the level the shares were sold in its IPO a little over two years ago.
Brokers and analysts have turned bearish on the company with one report saying the central bank's decision would 'end the operations of
Paytm
Payments Bank'. Paytm had gone public in Nov 2021 at a per-share price of Rs 2,150 that valued the company at Rs 1.2 lakh crore. On Wednesday, the stock on BSE closed at Rs 761 - translating to a market capitalisation of Rs 48,330 crore. RBI's announcement came after the markets closed on Wednesday.
"Paytm's entire plan from a banking perspective will stop now. It will face major issues particularly in the case of NCMC (national common mobility card) and FASTag services. The company was working on several FASTag projects and all of these will be fairly impacted," an analyst said. Besides, the brand Paytm will be severely impacted, the analyst added.
"For all practical purposes, the above notifications end the operations of Paytm Payments Bank. This is a definite negative development," wrote analysts at foreign brokerage house
Bernstein
.
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