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Paytm stock price: Paytm slumps to new low as Macquarie sees risk from Ambani’s financial foray

Shares of One 97., the parent company of India’s leading digital payments brand, Paytm, plunged to a record low on Tuesday after analysts from Macquarie Group Ltd. signaled risks of billionaire Mukesh Ambani’s foray into financial services. .’s Jio Financial Services Ltd. “may pose significant growth and market share risk” to players such as Paytm and ., Macquarie analysts led by Suresh Ganapathy wrote in a note Monday.

Shares fell more than 11% in Mumbai, heading for their lowest level since the company’s stock market debut last November. The stock is down about 75% from its listing price as Paytm’s losses widen and SoftBank Group Corp. reduced his interest in the company.

already has a license for a non-bank finance company that it can use to boost consumer and trade lending, according to the Macquarie analysts, who have a target of 450 rupees on underperforming Paytm. The stock was trading at 487 rupees at 1:05 pm local time.

Bloomberg

The warning comes after Reliance Industries announced last month that it would spin off and list its financial services company to bolster its presence in consumer businesses. This presents a new challenge for Paytm, which has struggled since its $2.3 billion IPO in 2021, one of India’s largest-ever offerings. “Jio’s plan has added to the misery,” said Prashanth Tapse, an analyst at . “The plummeting valuations of consumer technology companies make it difficult for new investors to maintain confidence in these stocks.”

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