Paytm Share update:
Shares of One 97 Communications Ltd, the parent company of Paytm, reached an unprecedented low on Wednesday, plummeting by 5 percent to hit its lower price limit of Rs 317.45. This marks a staggering 50.91 percent decline year-to-date.
Both the BSE and NSE have subjected Paytm securities to the long-term Additional Surveillance Measure (ASM) framework, a move aimed at alerting investors to the heightened volatility in share prices.
Bhavesh Gupta, President and Chief Operating Officer (COO), recently tendered his resignation, transitioning to an advisory role as part of the company’s broader organizational restructuring. Post May 31, 2024, Gupta will continue to provide support to Paytm in an advisory capacity within the CEO’s office.
In his resignation letter to Vijay Sekhar Sharma, Gupta cited personal reasons for stepping down from his role as President and COO, expressing his intention to continue assisting the organization as an advisor.
Additionally, Paytm announced leadership changes within its wealth subsidiary, appointing Rakesh Singh as the new Chief Executive Officer of Paytm Money Ltd (PML). Singh, boasting over two decades of experience, previously served as CEO of the stock broking business at Fisdom and held key positions at ICICI Securities and Standard Chartered Bank.
Analysts predominantly characterized the stock’s outlook as ‘bearish’ based on daily charts. Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, cautioned that the stock appeared weak on daily charts and might decline towards the Rs 280 level in the short term, advising caution.
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, concurred, stating that Paytm was in a bearish trend. While acknowledging the possibility of a temporary rebound to around Rs 370, he emphasized the overall weak structure of the stock and recommended a cautious approach, advocating for selling on rallies with a strict stop loss at Rs 255.
The stock has faced significant pressure since the Reserve Bank of India (RBI) imposed restrictions on Paytm Payments Bank’s operations, citing persistent non-compliances and continued supervisory concerns.
