One 97 Communications' stock plummeted by more than 5%, reaching a low of Rs 351.70 during Monday's early trading. The news of Bhavesh Gupta's departure as Paytm's COO and president preceded this decrease.
In a report to the stock exchange, the company's Board of Directors accepted Gupta's resignation, which will take effect at the conclusion of business hours on May 31, 2024.
"In its meeting on May 4, 2024, the Board of Directors of the Company noted the resignation that Mr. Bhavesh Gupta, the Company's President and Chief Operating Officer (also referred to as "Senior Management Personnel"), submitted through his letter dated May 4, 2024. The statement stated, "His resignation has been accepted by the corporation, and he will be released from his duties as of May 31, 2024, at the latest.
Gupta stated that he was taking a professional vacation for personal reasons, but he was also optimistic about Paytm's future.
"I'm excited to serve as an advisor for Paytm. Given the breadth of leadership in payments and financial services that Paytm has developed over the last several years, I am optimistic that it will achieve new heights," Gupta stated.
This announcement coincides with other recent Paytm employee departures. The CEO and Managing Director of Paytm Payments Bank Limited, Surinder Chawla, also quit last month, claiming a desire to seek better career possibilities and personal reasons. His final day of employment was scheduled for June 26.
Rakesh Singh was recently named CEO of Paytm Money, the wealth management division of One 97 Communications Ltd. Varun Sridhar was reassigned as CEO of Paytm Services Private Limited.
The business has made a point of bolstering its executive staff.
"Chief Operating Officers and Chief Business Officers, each having more than five years of Paytm experience and twenty to twenty-six years of cumulative work experience in related sectors, oversee Paytm's payment and credit operations. The CEO of Paytm and other top executives will now work closely with this seasoned leadership team. Paytm stated, "The Company has been concentrating on bolstering the responsibilities of its next generation of executives and having a strong succession planning process.
One 97 Communications is now being covered again by Bank of America (BofA), which has a target price of Rs 400 and a rating of "Underperform."
The firm noted that Paytm faces fierce competition in the payments industry and predicted that the company's fourth-quarter profitability will be dismal, in part because of the Reserve Bank of India's measures.
