Morgan Stanley buys ₹244 cr Paytm shares as 0.8% stake amid stock downturn

Financial services giant Morgan Stanley on Friday made a notable investment in Paytm’s parent company, One97 Communications, by acquiring shares worth ₹244 crore through an open market transaction.

Morgan Stanley, via its affiliate Morgan Stanley Asia (Singapore) Pte – ODI, purchased 50 lakh shares on the National Stock Exchange (NSE), representing a 0.8 per cent stake in Paytm. The average price per share was ₹487.20, resulting in a total deal size of ₹243.60 crore. However, details about the sellers remain undisclosed, PTI reported.

Paytm shares price
Paytm shares price faced another 20 per cent decline on the NSE. This adds to a total of 36 per cent drop in the share price in just 2 days after the Reserve Bank of India (RBI) directed Paytm Payments Bank Ltd (PPBL), an associate of Paytm, to cease accepting deposits or top-ups in various accounts, wallets, and instruments from March 1.

One97 Communications Ltd (OCL) holds a 49 per cent stake in Paytm Payments Bank, while Vijay Shekhar Sharma, founder of One97 Communications, has the other 51 per cent stake.

The shares of One97 Communications closed at ₹487.20 per piece on the NSE.

‘RBI planning to cancel Paytm Bank permit’
In related news, there are reports that the RBI is contemplating revoking the license of Paytm Payments Bank as early as next month.

This comes after the banking sector regulator has found potential violations, including the misuse of customer documentation rules and non-disclosure of material transactions.

The RBI aims to prioritise the protection of depositors and could make a final decision after the February 29 deadline, depending on Paytm’s representations, Bloomberg reported. The situation is dynamic, and the RBI’s stance may change based on further developments, it added.