Paytm shares drop over 6% after ED searches company offices

Shares of Paytm fell over 6 per cent in Monday’s trade after the Directorate of Enforcement (ED) carried out search operations at six premises of the company in Bangalore under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).

At 10.20 pm, the scrip was trading 1.79 per cent lower at Rs 714.55 over the last day’s closing of Rs 727.55 a piece. The stock has fallen nearly 55 per cent in the past one year and nearly 47 per cent so far in 2022.

One 97 Communication, the parent entity of Paytm, told the stock exchanges on Sunday that none of the funds that were asked to be frozen by the Directorate of Enforcement (ED) belonged to Paytm or any of its group entities.


The statement came after the ED searched half a dozen offices belonging to online payment gateways such as Razorpay, Paytm and Cashfree in Bengaluru in connection with a probe into the Chinese micro-loan app scandal.

“As part of ongoing investigations on a specific set of merchants, the ED has sought information regarding such merchants to whom we provide payment processing solutions. It is hereby clarified that these merchants are independent entities, and none of them are our group entities,” Paytm said in a statement.

“We are, and will continue to, fully cooperate with the authorities, and all the directive actions are being duly complied with.”