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Paytm shares end a 10-day losing streak with a 5% upper circuit
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Paytm Share Price | The stock opened at ₹340 apiece on the BSE, marking a gain of 2% from the previous close of ₹333.3. The fintech shares rallied further up to 5% to hit the upper circuit limit of ₹349.95 apiece on the BSE.
Shares of One 97 Communications Ltd, which operates online payments platform Paytm, hit the 5% upper circuit limit in morning trade on Friday, May 10, after the company clarified the inaccuracies of media reports suggesting Aditya Birla Finance and others invoking Paytm’s loan guarantees.
The stock opened at ₹340 apiece on the BSE, marking a gain of 2% from the previous close of ₹333.3. The fintech shares rallied further up to 5% to hit the upper circuit limit of ₹349.95 apiece on the BSE.
Shares of Paytm extended gains for the second straight day on Friday after witnessing a downward slide for 10 consecutive sessions. The stock had gained around 5% on Thursday.
In a stock exchange filing on Thursday, One 97 Communications said that the reports about lenders invoking loan guarantees are factually incorrect.
The statement came in response to recent media reports published on May 8, which stated that Aditya Birla Finance and others may have invoked Paytm’s loan guarantees.
Paytm clarified that it acts solely as a distributor of loans and does not provide any first loss default guarantee (FLDG) or other loan guarantees to lending partners. Therefore, the reports regarding the invocation of loan guarantees due to repayment defaults by partnered lenders are deemed inaccurate.
Paytm said it is committed to maintaining a diversified lending partnership network while adhering strictly to risk and compliance standards.
The company confirmed that its personal loans distribution business remained unaffected and continued to scale effectively. Additionally, the merchant loan business resumed operations at the end of March 2024 following the completion of the “@paytm” handle transition.
Addressing concerns regarding recent employee exits, Paytm highlighted it has a robust senior leadership structure, comprising over 50 senior vice-presidents, supported by a strong management and governance framework. The company assured that all recent changes were aligned with pre-approved succession plans discussed with the board in previous financial years.
Paytm reiterated its commitment to periodically evaluate talent within the context of future plans, resulting in transitions of some roles and employees. However, the company sees this as an opportunity to reward high-performing talent and welcome new executives to contribute to its next wave of growth.
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