Paytm Shares Hit 5% Lower Circuit After COO Bhavesh Gupta Resigns
Gupta will continue to serve as an advisor in the CEO's office after being relieved from duty on May 31.
Shares of One 97 Communications Ltd., which owns the brand Paytm, hit a lower circuit on Monday after its President and Chief Operating Officer, Bhavesh Gupta, resigned citing personal reasons. His resignation came into effect from May 4.
He would be relieved from the services at the at the close of business hours on May 31, the company said in an exchange filing. However, he will continue to serve as an advisor in the CEO's office after May 31.
Before this, One97 Communications also withdrew Gupta as its nominee on the board of Paytm Payments Bank Ltd., where he served as a director and board member. This happened after Paytm founder Vijay Shekhar Sharma stepped down from the board.
Along with Gupta's resignation, One97 Communications has also announced other management rejigs.
Shares of the company fell as much as 5% to Rs 351 apiece, the lowest level since March 13. It was trading 4.19% lower at Rs 354.40 apiece as of 09:55 a.m. This compares to a 0.01% advance in the NSE Nifty 50 Index.
The stock has declined 51% in last 12 months and 44.20% on year-to-date basis. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 28.45.
Out of 15 analysts tracking the company, five maintain a 'buy' rating, four recommend a 'hold,' and six suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 36.4%.
