NEW DELHI: Shares of One97 Communications Ltd, which owns the Paytm brand, tanked over 15 per cent in two days as investors again turned to dump the stock.
Extending its previous day's decline, the stock tanked 6.09 per cent to settle at Rs 419. 85 on the BSE. With this, the stock is down 45% from the time news broke about regulatory action on its payments bank subsidiary.
During the day, it dived 8.67 per cent to Rs 408.30.
On the NSE, shares of the company dropped 6.15 per cent to Rs 419.15, but were off the lows of Rs 410.
In two days, the stock has fallen Rs 15.5%, eroding Rs 4,870. 96 crore from its market valuation on the BSE.
It had fallen 10 per cent to hit lower circuit limit on Thursday, after a two-day rally in the stock fizzled out.
One97 Communications stock price had climbed 10 per cent on Wednesday and rebounded over 3 per cent on Tuesday after three days of sharp fall.
In the initial sell-off from February 1-5, the company's stock tumbled over 42 per cent, wiping out Rs 20,471. 25 crore from its market valuation, following the Reserve Bank of India's (RBI) crackdown.
On January 31, the RBI ordered Paytm Payments Bank Ltd, a restricted bank that can take deposits but cannot lend, to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, and cards for paying road tolls after February 29.
RBI Governor Shaktikanta Das on Thursday said there are no systemic worries and the action on Paytm was driven by a "lack of compliance" on the part of the company.
Paytm Payments Bank Ltd (PPBL) is an associate of One97 Communications Ltd. One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL.
Founder Vijay Shekhar Sharma has a 51 per cent stake in the bank.
PPBL Independent Director Manju Agarwal is learnt to have resigned from the board after the RBI imposed restrictions on the bank's operations. According to a source, Agarwal resigned with effect from February 1.