Paytm's Top 20 Shareholders Lose Rs 7,284 Crore As Stock Sinks 20%
Investor wealth wipeout stood at Rs 9,662 crore after shares of the company sank 20% on Feb. 1. Shares were locked in the lower circuit, with the biggest intraday fall since Dec. 7, 2023.
Paytm's top 10 shareholders lost over Rs 6,206.9 crore in investor wealth in the wake of a 20% fall in its share price on Thursday after the Reserve Bank of India imposed restrictions on Paytm Payments Bank.
These shareholders hold a total of 64.2% equity in the company, totaling over 40.78 crore shares. While, for the top 20, the figure amounted to Rs 7,284 crore with over 75% equity held.
Investor wealth wipeout stood at Rs 9,662 crore after shares of the company sank 20% on Feb. 1. Shares were locked in the lower circuit, with the biggest intraday fall since Dec. 7, 2023.
The banking regulator on Wednesday placed restrictions on any further deposits made or credit transactions in any customer account after Feb. 29, due to non-compliance and supervisory concerns.
The move led Jefferies and Motilal Oswal Financial Services Ltd. to downgrade Paytm's stock. Macquarie and Citi Research maintained a 'neutral' stance.
The severe restrictions imposed on its Payments Bank will significantly hamper Paytm's ability to retain customers and restrict it from selling payment products and loan products, analysts said.
In an exchange filing, the company said that depending on the nature of the resolution, it expects this action to have a worst-case impact of Rs 300 crore to Rs 500 crore on its annual Ebitda.
Shares of Paytm have fallen over 32.7% since Nov. 16 when the RBI raised credit risk weights on unsecured lending. They have risen over 11% in a 52-week period.
