Paytm shares fall 5% after COO Bhavesh Gupta resigns
On Monday, shares of One 97 Communications, the parent company of Paytm, experienced a 5% decline, reaching a day's low of Rs 351.70. This drop followed the company's disclosure to the exchanges regarding the resignation of Bhavesh Gupta, who served as the Chief Operating Officer (COO) and President of Paytm.
Shares of One 97 Communications, which runs , fell 5% to the day’s low of Rs 351.70 on Monday after the company informed the exchanges about the resignation of , COO and President of Paytm.“The Board of Directors of the Company at its meeting held on May 04, 2024, took note of the resignation tendered by Mr. Bhavesh Gupta, President and Chief Operating Officer of the Company (‘Senior Management Personnel’) vide his letter dated May 04, 2024. His resignation has been accepted by the company and he will be relieved from the services w.e.f. close of business hours on May 31, 2024,” said the filing to the exchanges.
Gupta said he is taking a career break due to personal reasons. “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,” he said.
Paytm has been in the news for various reasons in the past few months. The company landed into regulatory trouble and its core management did not sound confident of its future.
Earlier in the last month, Surinder Chawla, Managing Director and CEO of Paytm Payments Bank Limited (PPBL) had tendered his resignation citing personal reasons and to pursue “better career prospects”. His last working day will be June 26.
Recently, Paytm Money, the wealth management platform of One 97 Communications Ltd, had appointed Rakesh Singh as its chief executive, replacing Varun Sridhar, its CEO since 2020. Sridhar was moved to the role of CEO with Paytm Services Private Limited.
“Paytm’s payment and credit businesses are led by Chief Operating Officers and Chief Business Officers, each with over five years of experience at Paytm and 20-26 years of total work experience in relevant industries. This seasoned leadership team will now work directly with Paytm's CEO and other senior management. The Company has been focusing on strengthening the roles of its next line of leaders and robust succession planning,” the company said
Recently, Bank of America (BofA) resumed its coverage on One 97 Communications with an 'Underperform' rating and a target price of Rs 400 as the brokerage sees high competition in the payments business for Paytm while estimating a weak set of numbers for the fintech company when it announces its fourth-quarter earnings. It has attributed this to the Reserve Bank of India action.
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