Financial services giant Morgan Stanley has made a significant investment in Paytm’s parent company, One97 Communications, by acquiring shares worth ₹244 crore through an open market transaction.
Morgan Stanley, through its affiliate Morgan Stanley Asia (Singapore) Pte – ODI, purchased 50 lakh shares on the National Stock Exchange (NSE), representing a 0.8 per cent stake in Paytm. The average price per share stood at ₹487.20, resulting in a total deal size of ₹243.60 crore. However, details about the sellers remain undisclosed, as per our reporters.
Paytm Shares Face 20% Decline Amid RBI Directive
In the wake of the Reserve Bank of India’s (RBI) directive to Paytm Payments Bank Ltd (PPBL) to cease accepting deposits or top-ups in various accounts, wallets, and instruments from March 1, Paytm shares witnessed another 20 per cent decline on the NSE. This marks a total drop of 36 per cent in the share price in just two days.
Concerns Over RBI License Revocation for Paytm Payments Bank
Reports have surfaced indicating that the RBI is considering revoking the license of Paytm Payments Bank as early as next month. Alleged violations, including the misuse of customer documentation rules and non-disclosure of material transactions, have prompted this move.
One97 Communications Ltd (OCL) holds a 49 per cent stake in Paytm Payments Bank, while Vijay Shekhar Sharma, the founder of One97 Communications, possesses the remaining 51 per cent stake. The shares of One97 Communications closed at ₹487.20 per piece on the NSE.
RBI’s Regulatory Stance and Potential Impact on Paytm
The RBI’s primary concern is safeguarding the interests of depositors. The central bank may finalize its decision regarding Paytm Payments Bank’s license after the February 29 deadline, taking into account representations from Paytm. The situation remains fluid, and the RBI’s stance may evolve based on further developments.
