Shares of One97 Communications Ltd., the parent company of Paytm, edged lower on Thursday after the company filed a compounding application with the Reserve Bank of India (RBI). The move aims to resolve an ongoing case involving alleged violations of the Foreign Exchange Management Act (FEMA).
In 2023, the Enforcement Directorate (ED) issued a show-cause notice to One97 Communications for alleged FEMA contraventions worth ₹611 crore. By applying to the RBI, the company is seeking to settle the matter through regulatory means and avoid formal adjudication proceedings by the ED, according to sources familiar with the development.
A person with direct knowledge of the situation told NDTV Profit that the company has asked the ED to pause adjudication while the RBI reviews its application.
Following the news, Paytm’s stock fell as much as 0.60% to ₹886.15 in early trade but later recovered slightly to ₹890.35, down 0.13% at 9:29 a.m. In contrast, the NSE Nifty 50 index rose 0.36% at the same time.
Over the past 12 months, Paytm shares have gained 117.18%, though they are down 12.36% year-to-date. Trading volume on the day was 6.18 times higher than the 30-day average. The stock’s relative strength index stood at 46.06, indicating neutral momentum.
According to Bloomberg data, out of 19 analysts tracking the stock, nine rate it a ‘buy’, seven recommend ‘hold’, and three suggest ‘sell’. The average 12-month price target points to a potential upside of 5.9%.
