From Business Standard: 2024-05-08 05:51:29

Paytm stock price continues to plummet, hitting an all-time low of Rs 317.45 on Wednesday, locked in the 5% lower circuit for the third consecutive day after President and COO Bhavesh Gupta’s resignation. The company’s stock has tanked 68% from its 52-week high, facing regulatory challenges and senior resignations.

The resignation of President and COO Bhavesh Gupta marks the third senior departure from Paytm in recent months, following regulatory action against Paytm Payments Bank by the RBI. The stock price has dropped 14% in the past three days and 68% from its 52-week high, reaching an all-time low of Rs 317.45.

Bhavesh Gupta, overseeing payments and lending, resigned from Paytm due to personal reasons, transitioning to an advisory role until year-end. Paytm is expanding its leadership team to strengthen its payment and financial services distribution business for sustained growth and regulatory compliance. Macquarie previously downgraded ‘Paytm’ to underperform with a target price of Rs 275 per share.

Paytm’s recent regulatory challenges pose a serious risk of customer exodus, threatening its monetization and business model. With 330 million customers, 110 million monthly transacting users, and a merchant network of 10.6 million, the company faces uncertainty in revenue streams and maintaining its customer base.



Read more at Business Standard: Paytm hits all-time low of Rs 317.45; stock tanks 68% from 52-week high | News on Markets