'A screaming BUY': Ashneer Grover's 2022 X post about Paytm goes viral as its shares fall over 42% in 3 days

Former BharatPe MD Ashneer Grover's investment thesis on Paytm stock from 2022 went viral recently as the fintech firm's shares crashed over 42% in three trading sessions due to Reserve Bank of India's action against Paytm Payments Bank Ltd.

In March 2022, Grover said on X platform (formerly Twitter), "@Paytm stock is a screaming BUY ! It’s valued at $7B ; Funds raised itself is $4.6B ; Cash in Hand should be $1.5 B. So at CMP of ₹600, the market is saying value created is $5.5B after having spent $3.1B over last 10 years. That’s less than Bank FD rate. BUY !!"

On Monday, shares of One 97 Communications Ltd, which owns Paytm brand, fell by another 10 per cent to hit its lower circuit limit, as investors continued to dump the stock following the RBI’s crackdown.

The stock tanked 10 per cent to Rs 438.35 — its lowest trading permissible limit for the day — on the BSE.

It plummeted 9.99 per cent to hit its lower circuit limit of Rs 438.50 on the NSE.

In three days, the stock has tumbled over 42 per cent, wiping out Rs 20,471.25 crore, from its market valuation.

Amid the mayhem in the stock, netizens started slamming Grover for his bullish view on Paytm.

"Perfect example of why you shouldn’t follow anyone blindly. Always have your own conviction backed by your set of frameworks. Sadly, it’s your capital & you are exposed to overall risk," quipped an X user about Grover's social media post.

The regulator, last week, ordered Paytm Payments Bank Ltd, a restricted bank that can take deposits but cannot lend, to not take any further deposits or conduct credit transactions or carry out top-ups on any customers accounts, prepaid instruments, wallets, cards for paying road tolls after February 29.

Paytm Payments Bank Limited (PPBL) is an associate of One97 Communications Limited (OCL).

One97 Communications holds 49 per cent of the paid-up share capital (directly and through its subsidiary) of PPBL. Vijay Shekhar Sharma has a 51 per cent stake in the bank.

While users have the option to switch to other wallets, and FASTag services etc being provided by other vendors, Paytm management has said that PPBL is in discussion with RBI to comply with their direction for continuing the business.