Paytm Records Fresh All-Time Low, M-Cap Erodes Over Rs 1.03 Lakh Crore

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Paytm Records Fresh All-Time Low, M-Cap Erodes Over Rs 1.03 Lakh Crore
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the digital fintech company Paytm (NS: PAYT ) continued their free fall, sliding 3.9% to Rs 543.6 apiece at 12 pm, and recorded a new all-time low at Rs 541.2/share on Tuesday, having plunged 74.7% compared to its issue price of Rs 2,150.

The company’s market capitalization now stands at Rs 35,279 crore, eroding its valuation by over Rs 1.03 lakh crore, as opposed to its m-cap of about Rs 1.39 lakh crore at the time of listing in November 2021.

Banking regulator RBI banned Paytm Payments Bank from onboarding new customers to its platform on March 11, 2022, and a Bloomberg report on March 14 posted that the ban was put in place as the company violated rules by sharing local data with Chinese servers and failing to verify its customers properly. 

Last week, the brokerage firm Macquarie (ASX: MQG ) slashed the fintech stock’s target price to Rs 450/share, while continuing to maintain its underperform rating, setting the most bearish target price for Paytm in the domestic market.

In an interview with CNBC TV-18 in January, market veteran Shankar Sharma stated that it would not be surprising if shares of new-age digital stocks like Paytm, Nykaa (NS: FSNE ), Zomato (NS: ZOMT ), Cartrade (NS: CART ) and PB Fintech (NS: PBFI ), among others, tank 80-90% by the end of 2022.

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