** Shares of digital payments co Novatti Group fall as much as 28.2% to A$0.042, marking their biggest intraday fall since mid-March 2020

** Shares hit their lowest level since early-July

** Co to raise up to A$9.4 mln ($6.34 mln), comprising of an entitlement offer and a placement

** Issue price of A$0.04 per share represents a 31.6% discount to co's last closing price

** More than 2.4 mln shares change hands, over 6 times the 30-day avg of 375,149 shares

** As of last close, stock was down 29.5% YTD

($1 = 1.4832 Australian dollars)

(Reporting by Himanshi Akhand in Bengaluru)

((Himanshi.Akhand@thomsonreuters.com))