Paytm share price recovered partially after dropping more than 8 percent in January 24 trade on buzz of ED probe in crypto scam.
The company, however, clarified in a stock exchange filing that it did not receive any such query from ED.
"We confirm that we have not received any such new notice, communication, or query from the Enforcement Directorate regarding the matter mentioned in the media articles. The information published is factually incorrect and misleading and we had not received any query from the media prior to the publishing of this news article," said Paytm in a stock exchange filing.
"Please refer to our letter dated September 4, 2022, regarding the Directorate of Enforcement's (ED) search operations involving certain merchants for whom we provided payment processing solutions. The instances currently being reported by the media pertain to similar old enquiries regarding thirdparty merchants. We would like to clarify that these merchants are independent entities and are not part of our group. We confirm that we had fully cooperated with the authorities and had complied with all their directive," added Paytm.
Paytm, Razorpay, others face probe over crypto scam, ED freezes Rs 500 crore: Report
The news led to sharp fall in the stock price of Paytm with the counter falling to an intraday low of Rs 773.05 per share on the NSE, declining 8.12 percent. Later in the day, it pared some of the losses to trade 3.32 percent lower at 11:20 AM to quote at Rs 820.95 per share.
Earlier, fintech firm One97 Communications, which owns Paytm brand, reported a narrowing of consolidated loss to Rs 208.5 crore in the third quarter ended December 31, 2024 mainly on account of reduction in expenses across the board, mainly on payment processing charges and employee costs. The company had posted a loss of Rs 221.7 crore in the same period a year ago, the company said.
The revenue from operations of Paytm declined by 35.8 per cent to Rs 1,827.8 crore during the reported quarter, from Rs 2,850.5 crore in the December 2024 quarter driven by dip in revenue from payments and financial services (34 per cent), payment services (40 per cent) and marketing services (48 per cent).
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