It was announced on Friday that Morgan Stanley Asia has acquired a 0.78% stake in the Paytm operator One97 Communications Ltd. via open market operations for over Rs 243 crore.
According to the National Stock Exchange’s data on bulk deals, the brokerage mopped up 50 lakh shares in a single transaction.
As Paytm’s stock hit a 20% lower circuit for the second consecutive day, investors’ wealth worth Rs 15,016 crore was wiped out for the second consecutive day, according to reports.
In the company’s payments bank, the RBI found persistent non-compliance and significant supervisory concerns that needed to be addressed. One97 Communications said it would be working only with other banks and not its own payments bank from now on.
It has been reported that the shares of the hugely popular digital payments company have dropped below the maximum daily limit allowed in Mumbai for two days in a row, even though India’s stock market is reaching new all-time highs.
Paytm is down 36% since Wednesday’s close of trading and almost 25% this year.
In the years that have passed since its disastrous market debut in November 2021, when it was unable to convince investors that it would be able to become profitable in the face of growing competition from homegrown competitors and American tech companies, the company has struggled to find success.
As well as that, it also ran into some hot water with regulators – two years ago, the central bank barred its banking arm from signing up new customers.
Paytm’s stock is now trading at just 487 rupees per share (around $6) at the time of writing. The crash of the stock market during the past two days alone has resulted in the loss of $2 billion in market capitalization.
As a result, the company is only worth $3.7 billion as a result of this deal.
