Paytm market cap nears $2.5 billion as shares continue to tumble

Market capitalisation of One 97 Communications, the parent company of fintech platform Paytm, neared $2.5 billion on Tuesday as its shares continued to slide.As of 9.54 am, the Noida-headquartered company’s stock was trading 3.5% down at Rs 339.30 on the BSE.

The share hit a day’s low of Rs 337 apiece.

Paytm’s share price hit the lower circuit on Monday after declining 5%. This followed the news of the company’s chief operating officer and president Bhavesh Gupta resigning from his position – as announced by the company on Saturday.

Past valuations

At the time of its initial public offering (IPO) in 2021, Paytm was valued at nearly $20 billion. However, shortly after listing, its market capitalisation fell to $13 billion — below its last private market valuation of $16 billion.

Since January-end, the company’s shares have mostly been tumbling on account of the Reserve Bank of India’s action against Paytm Payments Bank.Recent developments

The RBI, in a January 31 missive, asked Paytm Payments Bank to halt its key banking services. This was followed by departure of the payments bank’s MD and CEO Surinder Chawla.

On Saturday, Paytm also announced changes in its leadership structure and said that Varun Sridhar, the CEO of its wealth management platform Paytm Money, was being replaced by Rakesh Singh, former head of broking services at PayU-backed Fisdom. ET was the first to report Sridhar’s departure on May 2.