Why Paytm shares are down 70% since it listed

[{"selector":"#anim-c67da3a0-8b1e-4eb6-bdb5-37436965aaf3","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-b45eaf52-1d33-4c2d-a59b-2937618d2770","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Shares of One 97 Communications Ltd — parent company of fintech platform Paytm — hit a new all-time low of Rs 672 per share

[{"selector":"#anim-b95cb05a-0b55-467d-931f-45b017193714","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-fc43e3a9-90c2-48d0-a7dc-796b9aa3f375","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Shares of One 97 Communications Ltd — parent company of fintech platform Paytm — hit a new all-time low of Rs 672 per share

[{"selector":"#anim-9f9d7ee0-b4f4-4580-9ea6-206c0dfc57e5","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ffe30b0a-57c8-4d12-bef8-425710dbea27","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The latest tumble in the company’s share price is on account of a ban by the Reserve Bank of India (RBI) on Paytm Payments Bank from onboarding any new customers.

[{"selector":"#anim-cbaed49c-2254-485e-95c0-0a6119d25c65","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1fbf00cf-45e6-4735-9cb8-2609cde1f57b","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] RBI said in a statement Friday that it had taken the action on the basis of certain “material supervisory concerns”, but did not detail the concerns.

[{"selector":"#anim-0a915a91-1d42-429f-9d35-56287e39164a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-fb177488-fb2c-4df2-82af-24b75a0da92c","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The fintech startup launched India's largest IPO of Rs 18,300 crore in November 2021 but the stock has been dwindling since it listed.

[{"selector":"#anim-cbc00213-d3cb-4dea-ba30-556880769847","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-44df8084-c78e-4c9d-a8cb-79d91d225e34","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Reserve Bank of India (RBI) on Friday barred Paytm Payments Bank from adding new customers with immediate effect due to likely gaps in its technology systems

[{"selector":"#anim-831dc41a-0b24-447b-a1d4-71ccd19d1600","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-78257378-5053-4f5d-8dac-8c882e078210","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The RBI has also directed the payments bank to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system

[{"selector":"#anim-fba1d0b6-b13d-43b3-b3e9-583aa616af6b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-cd3f84ee-928a-43f9-b6c9-633530075c94","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Currently, the stock is trading 65 per cent down from its all-time high of Rs 1,961.05 while on a year-to-date basis the stock is down 49%.

[{"selector":"#anim-19a256ef-7dc4-42c2-be35-b678782a7ac8","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1ff21729-f46c-4cfd-b3a8-3f5abd59223f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The stock made a tepid debut on November 18, 2021. The scrip got listed at a discount of 9.30 per cent at Rs 1,950 on the NSE against the issue price of Rs 2,150 per share.

[{"selector":"#anim-5449c3dd-a5ea-4b53-87d0-96df644fc9bb","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-44d8b771-cd62-45d6-9743-a47478a4df79","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] There is a serious allegation of data leaks to Chinese firms whereas RBI also barred Paytm bank from adding new customers.

[{"selector":"#anim-8ce61bc0-7a36-48ca-9051-d380baa0696a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2c5c3287-962a-44e4-b905-1ae9828dfc8a","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The fintech startup launched India's largest IPO of Rs 18,300 crore in November 2021 but the stock has been dwindling since it listed.