The shares of the parent company of India’s highest transaction fin-tech Platform Paytm, One 97 Communication Ltd. drop down by 9 percent on Tuesday, 22nd November 2022.
The shares drop was observed after the analysts of Macquarie Groups Ltd. indicated the threats from Mukesh Ambani’s sudden attack on the financial services business.
Macquarie analyst Suresh Ganapathy, mentioned in his note that Reliance’s Jio Financial Service Ltd. Can produce risks of remarkable development and market share for players like Paytm and Bajaj Finance Pvt. Ltd.
The 9 percent shares drop of Rs. 487.45 on the National Stock Exchange in Mumbai is below its previous drop in shares of Rs.511, which account for 8 percent seen on 12th May 2022.
The sudden decline in the shares was observed after National Payment Corporation of India (NPCI) reports suggest considering the imposition of limits on payments through Unified Payment Interface (UPI) platforms.
The Funds of the company decreased to 23 percent in the past week as Paytm losses increase due to the decline in the funds by 75 percent from its market price and Soft bank Corp. lowered its share in the company.
The Japan- Based Soft Bank Corp lowered its share in Paytm by selling 4.5 percent shares of the company for Rs. 555.67 for each share, via block deals for 1,630 Cr.
According to Macquarie analysts, Mukesh Ambani’s Reliance Industries Limited (RIL) has a license from a non-banking Finance Company with which the company can anchorage to stimulate consumer lending and merchant lending at a large scale. The analysts have a target of Rs. 450 on Paytm with underachieving grading.
Paytm gets awareness following Reliance industries’ announcement on its spin-off and lists the company’s financial service unit to prop up its presence in consumer ventures. Due to this Paytm has been provided with obstacles.
About the company
India’s leading digital transaction platform Paytm was set up in the year 2010 by Vijay Shekhar Sharma under One9 Communications Pvt. Ltd. based in Noida. The payment platform offers financial services like mobile banking offering through Paytm payment bank, lending, insurance, e-ticketing, and broking services.
In the Fiscal Year 2021, the digital payment platform earned its revenue from financial services and payments by 75 percent. While the company’s Gross Merchandise Value was proclaimed to be 110 billion US dollars.
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