Shares of One 97 Communications Ltd (Paytm) touched an all-time low, closing at Rs 344.90 on the BSE on the back of strong price support from overseas brokerage Macquarie. It fell 9.32% in Wednesday’s trading session, down 10% earlier in the day, prompting Macquarie to cut its target price to Rs 275. The brokerage warned Paytm about its panic status, and added “high risk of customer exit.” It poses a serious threat to its entire financial performance model.
The fintech giant’s woes are compounded by operational difficulties hampering its lending business with Paytm Payments Bank Ltd (PPBL) which has been inseparably linked to date, despite Paytm’s reasonable timeline to resolve these issues, according to Possible loan penalties again The anxiety of getting began to be too much, PTI reported. Bhavesh Gupta, COO and Chairman, Paytm, had said that fresh lending would be temporarily suspended till the restrictions imposed by RBI on PPBL are lifted.
Moreover, around 60,000-70,000 merchants, who make up a staggering 10-15% of Paytm merchants, are believed to have placed their payment orders through PPBL accounts This staggeringly connected ecosystem wom about investors fear it is growing, which is challenging It also highlights the urgency to quickly overcome Paytm’s business hurdles in the market environment.
