On February 29, Paytm shares saw negative trading for the third straight day. The fintech stock was trading at ₹393.00 on the National Stock Exchange (NSE) at 12:10 pm, down 3.25% downward circuit. The prior session saw a 5% loss for the counter as well.
The decline occurs even after Vijay Shekhar Sharma resigned from his position as the part-time non-executive chairman and board member of Paytm Payments Bank, as investors continue to express unease.
Following the RBI’s crackdown on Payment Payments Bank on January 31, the Paytm shares suffered greatly. It crashed at about 60%, then bounced back a little by touching the 5% upper circuit in back-to-back sessions.
Paytm has recovered its losses to trade 20% above the 52-week low of ₹318, which was reached on February 16. However, the stock is still almost 50% below the closing price of ₹761.20 on January 31.
Paytm’s net payments margin is expected to drop from 7-9bps to 6-7bps, according to UBS analysts. This is because the company is losing its high-margin wallet business and probably has cheaper terms to keep merchants.
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