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Home / Business / Paytm slumps to record low as macquarie flags risk from Jio Financial Services

Paytm slumps to record low as macquarie flags risk from Jio Financial Services

Ambani’s Reliance Industries has announced that it will hive off its financial services undertaking into Reliance Strategic Investments, which will be renamed Financial Services
Representational file image
Representational file image

Our Special Correspondent   |   Mumbai   |   Published 23.11.22, 03:02 AM

Shares of One97 Communications, the Paytmparent, sank to a new low as a Macquarie report raised risks to its payments and lending business from Jio FinancialServices even as big investors such as Societe Generale and SoftBank sold part of their holdings after the lock-in period ended.

The Paytm share on Tuesday hit a new 52-week low of Rs 474.30 on the BSE — a fall of almost 12 per cent. The stock ended 11.02 per cent, or Rs59.10, lower at Rs 477.10. 

The renewed pressure on the counter came after a Macquarie report said that the entry of Mukesh D Ambani in financial services would pose a challenge to Paytm.

 

Ambani’s Reliance Industries has announced that it will hive off its financial services undertaking into Reliance Strategic Investments, which will be renamed Financial Services.

Macquarie analysts said that Jio Financial Service scan pose a significant growth and market share risk for Paytm and Bajaj Finance.

The shares of Paytm are now trading at a discount of nearly 78 per cent to its issue price of Rs 2,150 per share. Over the past one month, they have lost a quarter of their value on the stock markets.

Nykaa woes

The woes for the shareholders of Nykaa continued as the company announced the resignation of its chief financial officer Arvind Agarwalafter market hours.

FSN E-Commerce Ventures, the parent of Nykaa, said that Agarwal is leaving the company to pursue other opportunities in the digital economy and start-up space. His last working day will be on November 25.

Shares of Nykaa have been under immense pressure after the expiry of the lock-in period for its pre-IPO investors. The scrip fell 4.55 per cent on Tuesday to end at Rs 175.20 on the BSE.

 

 



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