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- Paytm shares continue to plummet, hitting a new all-time low of ₹317.15 per share.
- The stock has been on a downward trajectory for 10 consecutive sessions, marking the longest losing streak since its listing in November 2021.
- Major lending partners, including Aditya Birla Finance, Piramal Finance, and Clix Capital, have reportedly severed ties with the fintech company, further exacerbating the stock’s decline.
Paytm shares hit a new all-time low amid a 10-day losing streak and the termination of partnerships with major lenders. The fintech company’s stock has dropped nearly 19% during this period.
Paytm Shares in Freefall
Paytm’s stock has been in a freefall, with the shares hitting a new all-time low of ₹317.15 in today’s session. This marks the 10th consecutive session of losses for the stock, the longest losing streak since its listing in November 2021. During this period, the stock has fallen from ₹391.35 apiece to today’s closing price of ₹317, translating into a drop of nearly 19%.
Major Lenders Cut Ties with Paytm
Adding to the company’s woes, major lending partners Aditya Birla Finance, Piramal Finance, and Clix Capital have reportedly terminated their partnerships with Paytm. This follows repayment defaults from customers and comes in the wake of the central bank’s ban on Paytm Payments Bank and a broader slowdown in unsecured consumer lending. The termination of these partnerships is expected to significantly impact the company’s financials.
High-Profile Resignations and Declining UPI Transactions
The company’s President and Chief Operating Officer, Bhavesh Gupta, recently resigned, marking the second high-profile resignation within a month. Additionally, the company’s Unified Payments Interface (UPI) transactions have declined for the third consecutive month in April, further contributing to the stock’s decline.
Stock Down 85% from IPO Price
With the stock’s current closing price of ₹317.15 per share, it is trading at an 85.25% discount compared to its issue price of ₹2,150 per share. This presents challenges for investors who participated in the initial public offering and have held onto their positions. The company’s current market capitalisation is ₹20,164 crore.
Conclusion
Paytm’s stock continues to face significant challenges, with shares hitting a new all-time low, major lenders cutting ties, and high-profile resignations. The company’s declining UPI transactions and the stock’s significant discount from its IPO price further underscore these challenges. Investors and stakeholders will be closely watching the company’s next moves as it navigates this difficult period.
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