Why Paytm's Share Price Is Tanking 3% Today

One97 Communications, the parent company of fintech major Paytm, saw a sharp decline in its shares after a substantial block deal.

What Happened: Around 1.6 crore shares, equivalent to a 2.56% stake in the company, with a total value of ₹1,441 crore, changed hands at an average price of ₹884 per share, CNBC-TV18 reported.

The specific details of the buyers and sellers involved in the block deal were not immediately available. The stock hit a low of ₹880 per share and saw an intraday decline of 4.6%.

See Also: Tesla’s $2B India Investment Plan Hinges On A Key Condition: Here’s Why The Government’s Taking Its Time

What Analysts Say: Recent regulatory changes by the Reserve Bank of India (RBI) hitting consumer lending norms have brought Paytm under scrutiny.

While CLSA analysts believe that fintech intermediaries like Paytm may be affected, they anticipate the impact to be relatively modest. Jefferies, on the other hand, suggests that tightened norms and increased interest rates by banks could potentially impact Paytm’s earnings due to potential partner restrictions.

The attention on Paytm has also been heightened by its inclusion in the MSCI Global Standards Index. IIFL Alternative Research estimates potential inflows of around $140 million (₹1,167 crore), while Nuvama Alternative and Quantitative Research anticipate inflows worth $162 million (₹1,350 crore) into the stock.

Price Action: Paytm’s share price was down 2.96% at ₹896 around noon on Friday.

Read Next: Tata Technologies CEO Lays Out Post-IPO Plans, Chipmaking On The Cards

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesMarketsMoversTechTrading IdeasOne97 CommunicationsPaytm