Why paytm share price is increasing?
Paytm ban news is circulating over the internet, After declining for three days in a row, Paytm shares have increased (Paytm Share Price). Paytm shares began trading higher by more than 4% on February 7. The shares of One97 Communication Ltd, the parent company of Paytm, jumped 8.66 percent to Rs 490.20 as of the time this article was written. But a ten percent increase was observed a few hours ago. Following that, an upper circuit was applied to it. But Paytm’s stock is still erratic following the market turbulence. But compared to the past few days, Wednesday is reportedly a better day for Paytm.
The shares of Paytm saw a 6% increase earlier on February 6 as well.
“Is PayTM backed by PM Modi?” the question has arised a few times in the past.
Users and staff of PAYTM will breathe a sense of relief after hearing the CEO’s remarks regarding the problem
Why was Paytm Banned: According to Vijay Shekhar Sharma, the company’s founder and CEO, everything will be fixed shortly. Aside from this, a significant thing that provides comfort has been mentioned.
Paytm Payments Bank was recently prohibited by the Reserve Bank of India (RBI) from accepting credit transactions or deposits of any type. Serious accusations against the corporation include money laundering. In a situation like this, there was also more talk about Paytm staff being laid off. In the midst of all of this, the company’s founder and CEO, Vijay Shekhar Sharma, declared on Saturday, January 4, that there is nothing to be concerned about for its employees.
“We’ll resolve everything shortly”
Approximately one hour passed during the virtual town hall gathering. This included key executives and the company’s founder in addition to 800–900 workers. In the town hall, Vijay Shekhar Sharma stated that it is impossible to pinpoint the exact location and method of the error. However, the business will soon be saved from this predicament. The meeting also stated that attempts will be made to find a solution and that discussions on this matter will take place with RBI. Three days after the ban was imposed, this meeting was convened.
“Nobody will lose their job“
In addition to Paytm Founder, Company President, and CEO Bhavesh Gupta, the town hall was attended by CEO of Paytm Payment Bank Surinder Chawla. Vijay Shekhar Sharma, in the meantime, declared that the company will not be laying off employees and that ongoing conversations are being held with the RBI. In addition, Paytm is collaborating on partnerships with other banks. Saying, “You all are part of the Paytm family and there is nothing to worry about,” he gave his staff even more reassurance.
ED inquiry was turned down
India Today reports that on February 4, 2024, One97 Communication Ltd, the parent company of Paytm, fully denied the rumours that the business’s founder will be subject to an Enforcement Directorate (ED) investigation. The business has categorically refuted this and stated that no inquiry has been conducted. According to the filing, some traders and users on our platform have previously been the focus of interrogations; in those cases, we have always complied with the authorities. it was also previously shown.
But following the RBI’s move, a downward trend in Paytm shares began, and over the past three days, the company’s shares have dropped by 43%. Monday is the first trading day of the week, and the share market opened at Rs 438.50, down 10% from its opening price. The company’s market capitalization, or Paytm MCap, has also decreased to Rs 27850 crore.