PAYTM SHARES DOWN FOR THE NINTH STRAIGHT SESSION, HIT 5% LOWER CIRCUIT

Shares of One 97 Communications Ltd., which runs Paytm, fell sharply on Tuesday, taking their downward run to the ninth straight session. The stock slipped 5% to hit a lower circuit of ₹334.15 after the company informed the exchanges about the resignation of Bhavesh Gupta, Chief Operating Officer and President of Paytm.

Gupta will move to an advisory position in the CEO office after May 31, 2024, as a part of overall organisational restructuring, Paytm had informed in a regulatory filing on May 4.

In his letter to Paytm founder and CEO Vijay Shekhar Sharma, Gupta said due to personal reasons, he will be unable to continue as President and COO with effective close of business hours on May 31. The company official suggested that he would support the organisation in his capacity as an advisor in the CEO office.

Gupta will be transitioning to an advisory role, offering guidance for Paytm's growth initiatives until the end of 2024. He was overseeing the payments and lending businesses.

"The company has also undertaken leadership transitions within its wealth subsidiary where Rakesh Singh has recently been appointed as the new Chief Executive Officer of Paytm Money Ltd (PML). With over two decades of experience, Rakesh Singh was previously the CEO of the stock broking business at Fisdom, and has held key management positions with ICICI Securities and Standard Chartered Bank," Paytm stated.

Paytm shares have fallen 50% in 2024 so far, after the Reserve Bank of India pronounced a rather unusual death sentence for Paytm Payments Bank on January 31 this year.

It barred the bank from undertaking any banking activities whatsoever — no deposits, no credit transactions, no wallet top ups, no bill payments, nothing — after February 29.

In terms of technicals, the relative strength index (RSI) of Paytm stands at 27.5, signaling it's trading in the oversold territory. This implies that stock may rebound.

The counter has a one-year beta of 0.4, implying very low volatility during the same period.

Paytm shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

At 11:15 am, the scrip was trading 4.99% lower at ₹333.85 apiece on the NSE.

2024-05-07T06:00:34Z dg43tfdfdgfd