Paytm shares tank 5% to hit lower circuit, stock down for 9th session in row
Upstox
2 min read • Updated: May 7, 2024, 12:06 PM
Summary
Paytm’s stock has been hammered since January, when the Reserve Bank of India announced action against its banking arm – the Paytm Payments Bank Ltd – for non-compliance of norms. Year-to-date, the shares have declined by 48%.
Shares of One97 Communications, the parent entity of embattled payments solutions company Paytm, tanked by 5% in the early trading hours on Tuesday. The stock dipped below the ₹350-level on the National Stock Exchange (NSE) to hit the lower circuit.
At 10:15 am, the shares dropped to ₹333.85 apiece, down 4.99% as against the previous day’s close, to enter the lower circuit on the bourse.
This marked the second consecutive day when Paytm’s stock plunged by 5%. On Monday, the shares declined to ₹351.70 apiece as the market was disappointed with the exit of company’s president and chief operating officer (COO) Bhavesh Gupta over the weekend.
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“The board of directors of the company at its meeting held on May 04, 2024, took note of the resignation tendered by Bhavesh Gupta, President and Chief Operating Officer of the Company vide his letter dated May 04, 2024. His resignation has been accepted by the company and he will be relieved from the services w.e.f. close of business hours on May 31, 2024,” a regulatory filing stated on Saturday.
Paytm stock declines for 9th straight session
With the latest plunge at the stock market, shares of the payments aggregator have declined for nine trading sessions in a row. In these sessions, Paytm’s stock has lost 13% of its value cumulatively.
Over the past one month, the shares have declined by 19%, and there have been only instances when the scrip had settled in the green at the closing bell. Year-to-date, the stock is down by a staggering 48%.
The company’s stock has been hammered since January, when the Reserve Bank of India (RBI) announced action against its banking arm – the Paytm Payments Bank Ltd (PPBL) - for non-compliance of norms.
The bank, from March 15 onwards, has been barred from onboarding new customers and accepting fresh deposits. However, Paytm was allowed to operate as a Third-Party Application Provider (TPAP). The company tied up with top lenders such as Axis Bank, HDFC Bank, Yes Bank and State Bank of India (SBI) to continue its operations unhindered.