Paytm Shares Drop 6% Following ED Raids
Paytm shares fell 3% in early trading on Monday after the ED raided its offices.
Despite the company's denials, the merchants are being investigated by the Enforcement Directorate in connection with the Chinese loan app case.
In intraday BSE trade on Monday, the stock dropped 6.6% to Rs 681.20 per share. The share price was 68 percent lower than its issue price of Rs 2,150 at the day's low of Rs 681.20.
Compared to the benchmark Sensex, which has dropped 0.6 percent over the same time period, the stock has destroyed over 45 percent of investors' wealth in 2022 (year to date).
ED had conducted raids at 6 Razorpay, Paytm, and Cashfree locations in Bengaluru due to alleged irregularities in instant app-based loans that were "controlled" by Chinese individuals.
The federal investigation agency claimed that during the raids, it seized money worth Rs 17 crore from "merchant IDs and bank accounts of these Chinese persons-controlled entities."
This is to clarify that none of these merchants are part of our group and that they are all separate legal entities.
We have been cooperating fully with the authorities and will do so in the future. All of the directive actions are being duly carried out.
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