Paytm Shares Hit Lower Circuit After It Confirmed To Have Received ED Notices

Shares of Paytm operator One97 Communications Ltd. hit the lower circuit and fell to a fresh record low on Thursday, after it confirmed that it has received notices from the Enforcement Directorate.

The confirmation from the company came after the stock exchanges sought answer on reports that the Enforcement Directorate had registered a case against Paytm under the Foreign Exchange Management Act violations.

The crisis-hit company continues to receive notices and requisitions for information, documents and explanations from the authorities that include the ED.

In an earlier notification, Paytm had denied any violation of foreign exchange rules.

The company also said that Paytm Payments Banks Ltd. has not undertaken any outward foreign remittances.

Shares of the company were locked in the lower circuit, with a fall of as much as 5% to Rs 325.05 apiece. This compares with a 0.34% advance in the NSE Nifty 50 as of 3:02 p.m.

It has fallen 49.21% in the past 12 months. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 20, indicating it was underbought.

Out of 15 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold', and six suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 49.2%.