Paytm shares drop 5% following resignation of COO Bhavesh Gupta
Paytm share price today: Shares of One 97 Communications, the parent company of Paytm, fell by 5% to a day’s low of Rs 351.70 on Monday after the announcement of Bhavesh Gupta’s resignation as the company’s Chief Operating Officer (COO). Gupta also served as the President of Paytm.
According to a filing to the stock exchanges, Paytm confirmed that the Board of Directors accepted Gupta’s resignation at a meeting held on May 4, 2024. His last day with the company will be May 31, 2024.
At 12:48 PM, the stock was trading 4.87% lower at Rs 351.90 on the National Stock Exchange.
Gupta indicated that his resignation was due to personal reasons and that he plans to take a career break. He said, “I look forward to supporting Paytm in an advisory role. I am confident of Paytm reaching new heights given the depth of leadership in payments and financial services that has been built over the past few years.”
As per an ET report, Paytm has experienced several notable management changes recently. The company faced regulatory issues, and its top management seemed uncertain about the company’s future, the report said.
ALSO READ | Paytm Money CEO Varun Sridhar, who made platform profitable, steps down; Rakesh Singh to take charge
In early April, Surinder Chawla, the Managing Director and CEO of Paytm Payments Bank Limited (PPBL), resigned, citing personal reasons and the desire for “better career prospects.” His final day will be June 26.
Additionally, Paytm Money, the wealth management platform of One 97 Communications, announced the appointment of Rakesh Singh as its new CEO, succeeding Varun Sridhar, who had been CEO since 2020. Sridhar has transitioned to the role of CEO at Paytm Services Private Limited.
According to a company statement, Paytm’s payment and credit businesses are managed by Chief Operating Officers and Chief Business Officers, each with more than five years of experience at Paytm and 20 to 26 years of industry experience. This experienced leadership team will now work directly with Paytm’s CEO and other senior management. It is focusing on developing its next generation of leaders and strong succession planning.
Bank of America (BofA) recently resumed its analysis of One 97 Communications, giving it an ‘Underperform’ rating and setting a target price of Rs 400. The brokerage noted that Paytm is facing intense competition in the payments business and predicts a disappointing fourth-quarter earnings report. BofA attributes this to actions by the Reserve Bank of India (RBI).
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