Paytm’s crisis is not over yet
The clouds of crisis over Paytm, one of the country’s largest digital platforms, have not cleared yet. After the meeting with Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) officials, the company’s shares have jumped by 9 percent, but there has been no satisfactory answer from the regulator RBI regarding Paytm. In such a situation, if Paytm sinks, it will cause a huge disaster.
When Paytm’s IPO came, it was the biggest IPO in the country. At that time a large number of retail investors had invested money in it. After the improvement in the performance of the company, a large number of FIIs and mutual fund schemes have invested money in Paytm.
What will happen to 11 lakh investors?
About 11 lakh people have invested in Paytm shares as retail investors. Retail investors are those whose investment in any share is less than Rs 2 lakh. These investors of Paytm have been facing the brunt of falling prices since its IPO, now if Paytm sinks, then these people will have to bear the biggest loss.
Among those investing in Paytm, not only retail investors but also 514 FIIs and 97 mutual fund schemes have invested. If seen this way, the sinking of Paytm will cause terrible devastation in the market. Whereas in 97 mutual fund companies only common man’s money is invested.
The money of these big investors is also involved
Antfin (Netherlands) Holdings, a subsidiary of China’s Ant Group, holds 9.89 percent stake in Paytm. Apart from this, Mauritius’ Safi Lee Mauritius Company Limited has 10.83 percent stake, Resilient Asset Management has 10.29 percent stake, SVF India Holdings (Cayman) has 6.46 percent stake, Saif Partners India has 4.60 percent stake among the companies investing as FDI. Is. While Canada Pension Plan Investment Guard as FPI took 1.77 percent stake, BNP Paribas also took 1.33 percent stake in Paytm.
RBI has banned Paytm
RBI has banned Paytm Payments Bank, another unit of One97 Communications, which owns the Paytm brand. The central bank has banned Paytm Payments Bank from adding new customers from March 11, 2022. In the new ban imposed on January 31, 2024, almost all its services have been banned and after February 29, people will no longer be able to deposit any new money in Paytm Payments Bank.