- Paytm’s share price fell by 5% on Monday following the resignation of the company’s President and COO, Bhavesh Gupta.
- Gupta cited personal reasons for his departure, which will be effective from the close of business hours on May 31, 2024.
- Paytm has announced the appointment of Rakesh Singh as the new CEO of Paytm Money and Varun Sridhar as CEO of Paytm Services Private Limited.
Paytm’s stock takes a hit following the resignation of its President and COO, Bhavesh Gupta. The company is reshuffling its leadership team, with new appointments announced.
Paytm’s Leadership Reshuffle
Paytm’s parent company, One97 Communications, confirmed in a regulatory filing that Gupta’s resignation has been accepted by the company’s board. Despite his departure, Gupta will continue to support the company as an Advisor in the CEO office after May 31, 2024. The fintech giant has appointed Rakesh Singh as the new CEO of Paytm Money and Varun Sridhar as CEO of Paytm Services Private Limited. The company stated that these changes are aligned with its ambition to build a large and profitable payment and financial services distribution business.
Impact on Paytm’s Stock Price
The news of Gupta’s resignation led to a 5% drop in Paytm’s share price. The company’s stock has been on a downward trend, plunging more than 21% in the past three months and over 44% year-to-date (YTD). At 11:00 am, Paytm shares were trading 4.42% lower at ₹353.85 apiece on the BSE.
Regulatory Challenges
Earlier this year, the Reserve Bank of India (RBI) barred Paytm’s associate company, Paytm Payments Bank (PPBL), from accepting fresh deposits and conducting credit transactions after March 15. These restrictions are likely to impact Paytm’s Q4 results.
Conclusion
Paytm’s leadership reshuffle and regulatory challenges have led to a significant drop in its share price. The company’s future performance will be closely watched by investors and market analysts.
