One 97 Communications, the parent company of Paytm, saw its shares drop over 8% in the early morning trade on February 9, a day after reports surfaced suggesting that the fintech company would acquire Bengaluru-based Bitsila. 

Paytm’s shares hit an intraday low of Rs 410, 8.2% lower than its previous closing price on the National Stock Exchange (NSE). At 12:10 pm, the stock was trading 6.68% lower at Rs 416.8.

According to media reports, Paytm is in the final stages of finalising an acquisition deal with Bitsila. However, details regarding the deal size and whether it is a cash or stock deal remain unconfirmed.

Bitsila is an interoperable e-commerce startup with the third-largest seller position on the Open Network for Digital Commerce (ONDC). 

Paytm’s stock has been under pressure since January 31 when the Reserve Bank of India (RBI) instructed its banking arm, Paytm Payments Bank, of Paytm, to cease deposits, credit transactions or top-ups in customer accounts, prepaid instruments, wallets, FASTags, and NCMC cards after February 29, 2024.

RBI Governor Shaktikanta Das addressed the market’s concerns in the post-MPC press conference. He clarified the supervisory action against Paytm, saying, “There is no worry about the entire system. It is an issue with a specific institution”. 

Governor Das also added that the action was taken after repeated instances of non-compliance and after providing ample time to take corrective measures.