Paytm shares near all-time low after a slew of resignations

Shares of One97 Communications, the parent of online payment firm Paytm, fell as much as 4.14 per cent to hit near all-time low of Rs 320 after a slew of resignations from its top management.

Notably, the stock had previously hit an all-time low of Rs 318 on February 16.

The recent departures from Paytm's leadership team include Chief Operating Officer Bhavesh Gupta, who exited the company on Saturday, May 4. Additionally, in the past month, Surinder Chawla, Managing Director and Chief Executive Officer of Paytm Payments Bank, along with Chief Marketing Officer Sumit Mathur and Paytm Money's CEO Varun Sridhar, have all stepped down. Ajay Vikram Singh, Chief Business Officer for the UPI and User Growth vertical, and Bipin Kaul, Chief Business Officer for Offline Payments, have also left their positions.

The company's shares have been facing intense selling pressure since January 31, when the Reserve Bank of India imposed restrictions on Paytm Payments Bank for non-compliance with KYC norms. This regulatory action has further exacerbated investor concerns.

Since its listing on stock exchanges in November 2021, Paytm has massively underperformed the broader market and has been recognised as a wealth destroyer, with its shares plummeting by 85 per cent from the IPO price of Rs 2,150. The IPO itself was a monumental event, raising Rs 18,300 crore and touted as the country's largest IPO at the time. The offering comprised a combination of a Rs 10,000 crore offer for sale (OFS) and a fresh issue of Rs 8,300 crore.

The recent string of executive departures, coupled with ongoing regulatory challenges reflect the turbulence faced by Paytm and its parent company, One97 Communications.