Following the RBI announcement, Paytm shares took a nosedive, plummeting nearly 60%. Moreover, six mutual funds completely unloaded their stakes in Paytm’s parent company last month, while another six significantly scaled down their investments. The total sell-off reached over 91 lakh shares valued at INR 380 crore by the end of February.
Praveen Sharma, the senior vice president of business at One 97 Communications, the parent company of Paytm, has resigned after over four years of service, creating a leadership vacuum. Paytm’s strategic shift of its point of sale terminals to RBL Bank, in response to regulatory concerns, is a pivotal development. Moreover, the acquisition of the Third-Party Application Provider (TPAP) License from NPCI and the significant decline in Paytm’s stock value, amidst divestments by mutual funds, underscore the company’s efforts to navigate regulatory changes and optimize its operations.