Paytm Denies Receiving New ED Notice Amid Share Price Decline
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Synopsis
On January 24, Paytm clarified it has not received any new notice from the Enforcement Directorate regarding a cryptocurrency scam. The inquiry, dating back to September 2022, does not involve Paytm or its subsidiaries. This announcement follows a decline in stock prices amidst investigation claims.
Key Takeaways
- Paytm confirms no new ED notice received.
- Ongoing investigation is unrelated to Paytm.
- Claims date back to September 2022.
- Stock price fell to Rs 773.05 before a slight recovery.
- Parent company reported a 10 percent rise in operating revenue.
Mumbai, Jan 24 (NationPress) The prominent financial services provider Paytm announced on Friday that it has not received any recent notice from the Enforcement Directorate (ED) concerning an ongoing inquiry linked to a cryptocurrency fraud.
In a regulatory filing, the firm addressed inquiries from stock exchanges, clarifying that the case dates back to September 2022 and is unrelated to Paytm or its affiliated companies.
The BSE and NSE had reached out for clarification amid allegations regarding an ED investigation.
Earlier media reports suggested that Paytm, along with various payment processors, was under scrutiny for purportedly enabling a significant crypto scam.
“We would like to emphasize that there is no inquiry regarding the Company or its subsidiaries. The ED’s investigation is directed at third-party merchants, not at Paytm,” the company stated in a filing to the BSE.
This scam allegedly involved over Rs 2,200 crore collected from investors across 20 states under the guise of cryptocurrency mining investments. Reports indicate that the funds were subsequently transferred abroad, with a portion of the assets frozen by the ED during the process.
Following these revelations, Paytm's stock plummeted to Rs 773.05 per share during intraday trading, though it partially rebounded to Rs 814.4, reflecting a decline of nearly 4 percent by around 2 pm.
In the third quarter of FY25, One97 Communications Limited, the parent entity of Paytm, reported a 10 percent quarter-on-quarter increase in operating revenue, amounting to Rs 1,828 crore, propelled by its payments sector and broadening financial services distribution.
The company noted a PAT improvement of Rs 208 crore QoQ, reaching Rs (208) crore, while its cash reserves escalated by Rs 2,851 crore QoQ to Rs 12,850 crore.
