Shares of One97 Communication (referred to as "the company" hereafter) experienced a surge of 5%, hitting the upper circuit at Rs 358.35, resulting in a halt in trading. This spike came after the Reserve Bank of India (RBI) announced an extension of the deadline for wallet deposits and credit transactions to March 15. Moreover, a strategic partnership with Axis Bank was unveiled, aimed at facilitating merchants' payments by transitioning the nodal account to a newly established escrow account with the bank.
Previously, the company operated with a nodal account through Paytm Payments Bank. The transition to Axis Bank's escrow account is expected to streamline merchant settlements. In an official filing, the company stated, "Consumer payments for merchant transactions are typically collected in a dedicated account. This arrangement enables Paytm to seamlessly transition its merchants’ settlements to Axis Bank, thereby facilitating business operations for the merchants."
Additionally, the RBI provided relief to the company by extending the deadline for operational adjustments from February 29 to March 15. According to the RBI's press release dated February 16, after March 15, 2024, no further deposits or credit transactions will be permitted in customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards, etc., except for interest, cashbacks, sweep-ins from partner banks, or refunds.
The company's shares have encountered a significant downturn, witnessing a 36% decline over the past 20 days following regulatory restrictions imposed by the banking regulator, barring the acceptance of payments through Paytm Payments Bank and onboarding new customers.
Over the last five days, the company's stock has depreciated by approximately 9%, and over the past month, nearly 54% of investor wealth has been eroded. In the longer term, the shares have experienced a substantial decline, with a 42.5% reduction in wealth over the past year and a staggering 77% decrease over the last five years.
In contrast, the benchmark index Nifty 50 has displayed resilience, rising by 2.4% in the past five days and 2.2% over the last month. Furthermore, it has delivered robust returns, appreciating by almost 24% in the past year and approximately 105% over the last five years.
For investors seeking insights into Nifty 50 and BSE Sensex levels, along with expert advice on market trends and portfolio management strategies, the Financial Express offers a comprehensive platform. By downloading the Financial Express App, investors can stay updated with the latest stock market statistics, news, and top brokerage recommendations, enabling informed decision-making in the dynamic financial landscape.
Post a Comment