Paytm Target Price: Negative news continues to pour in for Paytm investors. Now Paytm has been downgraded by brokerage house Macquarie. Also said that the company is currently struggling for its existence. For this reason, the brokerage firm has reduced the target price of Paytm’s parent company One 97 Communications by 58 percent (Rs 375) to Rs 275. Its target price was earlier set at Rs 650 by the brokerage firm.
The brokerage firm says that we feel that there may be a big decline in the company’s income from payments and distribution in the coming years. Currently, Paytm has more than 33 crore customers and 11 crore monthly transactions. At the same time, the company has more than one crore merchants.
The company will face this problem
It was said by the brokerage house that it is not going to be easy to shift the merchant accounts of Paytm to any other bank. For this, KYC will be required again. In this also the deadline of 29th February is a big hurdle.
What is the crisis of Paytm Payments Bank?
RBI has directed Paytm Payments Bank Limited not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. RBI had earlier on March 11, 2022, barred PPBL from adding new customers with immediate effect. Paytm Wallet customers can use it till their balance is exhausted. They will not be able to add money to it after February 29. If RBI does not relent, top-up for Paytm wallet will stop and transactions will not be possible through it.
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