Morgan Stanley Asia Singapore Pte (ODI) acquired 50,00,000 shares of the company at Rs 487.2 each, according to bulk deals data on the National Stock Exchange.
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The stock has been caught in a bear grip since Thursday after the Reserve Bank of India barred Paytm Payments Bank from offering all kinds of banking services for non-compliance.
The stock was locked in the 20% lower circuit for the second straight session at Rs 487.20.
The company expects RBI’s action to have a worst-case impact of Rs 300-500 crore on its annual EBITDA, going forward. However, it expects to continue on its trajectory to improve its profitability.
Various brokerages have downgraded Paytm parent shares after RBI’s action. Jefferies has downgraded the stock and given a target price of Rs 500 while Motilal Oswal Securities has also downgraded it to “reduce” with a target price to Rs 575.
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Paytm’s business impact will largely come from reputational concerns arising from governance/compliance and hence, the path to resolution will be from stronger compliance with regulations and revoking of RBI measures, Jefferies said.Last year, Warren Buffett’s Berkshire Hathway had sold its entire stake in Paytm at Rs 877.2 apiece to book a loss on the investment after 5 years.
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