Paytm stock plummeted yesterday after Macquarie said Jio Financial Services can be a competitive threat

23 Nov 2022 , 06:45 AM

Shares of One 97 Communications Ltd., the parent company of India’s largest digital payments brand, Paytm, fell to a record low on Tuesday after Macquarie Group Ltd. analysts warned of risks associated with billionaire Mukesh Ambani’s push into the financial services industry.

Jio Financial Services Ltd., a subsidiary of Reliance Industries Ltd. (NSE 0.55%), “may pose a significant growth and market-share danger” to rivals Paytm and Bajaj Finance Ltd., according to a report published on Monday by Macquarie analysts under the direction of Suresh Ganapathy.

In Mumbai, the shares dropped more than 11%, approaching their lowest point since the company’s market debut in November. As Paytm’s losses increased and SoftBank Group Corp. decreased its ownership of the business, the stock decreased by nearly 75% from its offering price.