Morgan Stanley Seizes Opportunity in Paytm Crisis, Invests ₹244 Crore in Shares

On Friday, Morgan Stanley acquired shares valued at ₹244 crore in Paytm’s parent company, One97 Communications, securing a 0.8% stake.

On Friday, financial services giant Morgan Stanley invested in Paytm’s parent company, One97 Communications, acquiring shares worth ₹244 crore through an open market transaction.

Morgan Stanley, through its affiliate Morgan Stanley Asia (Singapore) Pte – ODI, acquired 50 lakh shares on the National Stock Exchange (NSE), securing a 0.8% stake in Paytm. At an average price of ₹487.20 per share, the total deal size amounted to ₹243.60 crore. However, the details about the sellers remain undisclosed.

Current Price of Paytm Shares

Paytm shares experienced another 20% decline on the NSE, contributing to a total 36% drop in share price over just 2 days. This followed the Reserve Bank of India (RBI) directing Paytm Payments Bank Ltd (PPBL), an associate of Paytm, to stop accepting deposits or top-ups in various accounts, wallets, and instruments from March 1.

One97 Communications Ltd (OCL) owns a 49% stake in Paytm Payments Bank, with founder Vijay Shekhar Sharma holding the remaining 51%. The closing price of One97 Communications shares on the NSE was ₹487.20 each.

‘RBI Considering Revoking Paytm Bank’s License’

In related developments, there are reports suggesting that the RBI is considering the cancellation of Paytm Payments Bank’s license as soon as next month. This decision follows the banking sector regulator’s discovery of possible violations, including the misuse of customer documentation rules and non-disclosure of material transactions.

The RBI is focused on safeguarding depositors and might reach a final decision after the February 29 deadline, taking Paytm’s representations into account, according to Bloomberg. The situation is evolving, and the RBI’s position could shift based on subsequent developments.

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