Paytm Stock Tumbles 5%

Shares of One 97 Communications Limited have fallen for the ninth consecutive day today, May 7.

Shares of Paytm's parent company One 97 Communications Limited have fallen for the ninth consecutive day today, May 7. Today the company's shares have a lower circuit of 5 percent and it is trading at a price of Rs 334.15.

With this decline, the market cap of the company has come down to Rs 21,242 crore. Actually, Paytm's Chief Operating Officer and President Bhavesh Gupta has resigned from his post. After this news, there is heavy selling in the shares of the company.

Bhavesh Gupta resigned due to personal reasons

Paytm has said in the information given to the stock exchanges that Gupta has resigned due to personal reasons. His resignation came on 4 May. He said that he will continue in his post till the end of this month.

After the RBI action, Paytm had banned its lending program for two weeks. Even after three months of the crisis, almost half of the partners have not started giving loans on the Paytm platform. A source with knowledge of this matter told this.

Paytm's parent company One97 Communications Limited appointed Bhavesh Gupta as President and COO in May 2023. Earlier, Gupta was the CEO of Lending and Head of Payments in the company.

He joined Paytm in the year 2020. Before Paytm, Gupta held various roles including CEO of Clix Capital (formerly known as GE Capital), Head of SME and Business Banking at IDFC Bank.

Paytm shares have fallen by 50 percent so far in 2024 after the Reserve Bank of India took action on Paytm Payments Bank on January 31 this year. RBI had barred the bank from doing any kind of banking activity after February 29.

Talking about technicality, Paytm's Relative Strength Index (RSI) is at 27.5, which shows that it is trading in the oversold zone. This means that the stock may rise. Paytm shares are trading below the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.