One 97 Communications Limited (Paytm) Shares of Paytm have fallen by Rs 50 this year due to the exit of top management officials, RBI restrictions on select businesses of Paytm Payments Bank Limited (PPBL) and termination of loan guarantees by some partner banks due to non-payment of loan installments by customers. More than percent have been broken. Shares of Paytm closed five per cent lower at Rs 317.15 per share on the NSE on Wednesday, its record low.
The previous historical low of Rs 318.05 was also recorded on February 16 this year. Amidst the ongoing uncertainties, the market capitalization of Paytm’s promoter company One97 Communications has declined by about $ 2.5 billion. In such a situation, will Vijay Shekhar Sharma be able to sail the company? This is a big question.
The market cap of the company was 20 billion dollars
At the time of listing on the stock market in 2021, the valuation of the digital payments company was approximately $20 billion. There has been a steady decline in share prices since then, especially after the central bank imposed restrictions on select businesses of Paytm Payments Bank in January this year. Meanwhile, the process of resignation of top officials in Paytm continues.
These people said bye to the company
According to reports, Ajay Vikram Singh, chief business officer (CBO) of UPI end user growth vertical, Bipin Kaul, CBO of offline payments, and Sandipan Kashyap, CBO of consumer payments, have stepped down from their posts as part of the “ongoing restructuring”. These senior executives have left their posts after the sudden resignation of Paytm President and COO Bhavesh Gupta. Bhavesh Gupta has taken a break from his career “due to personal reasons”. He will remain associated with the company in the role of advisor till the end of this year.
Apart from these, other senior executives who left the company in recent months were Paytm Payments Bank MD and CEO Surinder Chawla, former One97 Communications marketing officer Sumit Mathur and Corabar senior vice president Praveen Sharma, according to reports.
Will Vijay Shekhar Sharma be able to get out of the crisis?
Amidst all this, Paytm CEO Vijay Shekhar Sharma has taken charge in a big way. He is working directly with the new top management. The company said in a statement, “We are going through a process of restructuring and are committed to ensuring sustainable growth in key businesses. This is a sign of Paytm moving forward with new energy under the guidance of its CEO. These changes are part of Paytm’s growth.” “This is part of our approach to strengthening the next line of top management.”
The company said it is expanding its top management to build a larger and profitable payments and financial services distribution business. “These strong top executives will work directly with the CEO and other senior managers to strengthen the group’s structure to ensure regulatory compliance and sustainability,” it said.
Input: IANS
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