India's payment giants fall in a row! What is the situation? Warren Buffett previously "cut meat" to liquidate positions, a number of giants have cashed out:-www.deekpay.com
According to the article, here is a summary of the key points about Paytm's parent company One97 and related events:
1. **SHARE PRICE DECLINE**: One97's share price on the Bombay Stock Exchange fell for three consecutive trading days, dropping a further 101 TP3T on Monday, for a cumulative decline of over 401 TP3T over the past three trading days, and a loss of about $2.5 billion (roughly Rs. 18 billion) in market capitalisation.
2. **Regulatory issues**: The RBI has found multiple violations by Paytm Payments Bank, including transactions that exceeded regulatory limits, is considering revoking its payments bank licence, and has ordered the cessation of most of its operations.
3. **Corporate response**: One97 and its founder Sharma have stated that it is not under investigation by India's anti-money-laundering agency.
4. **Company Background**: Founded in 2019, One97's payment app Paytm, known as "Paypal India", provides payment services, commerce and cloud services, and financial services to 333 million consumers and 26 million merchants.
5. **Shareholder situation**: One97's shareholders include Alibaba, SoftBank Vision Fund, Berkshire and other large Internet business shareholders and investment institutions. However, in recent years, both Alibaba and Softbank Group have been reducing their holdings in the company.
6. **Share Price Trend**: One97 was listed in October 2021, raising Rs. 183 billion, a record for the largest IPO in India at that time. However, the share price has been trending poorly since the IPO.
7. **Investment losses**: Berkshire liquidated its position in Paytm in 2023, losing about $40% in five years of holding, showing that the "God of Stocks" Warren Buffett's investment in India is not going well.
The article also mentions other relevant information about One97, including the company's scope of business, the impact of regulatory issues, as well as the company's shareholder structure and stock price trends.