Paytm shares tank 9% to hit fresh record low. Here's why

Shares of One 97 Communications Ltd (Paytm) plunged 9.32 per cent in Wednesday's trade to hit a fresh all-time low of Rs 344.90 on BSE, a day after the stock tanked 10 per cent after foreign brokerage Macquarie cut its target price on the stock to Rs 275, as it felt the fintech major was fighting for survival. Paytm, Macquarie said, faces "a serious risk of exodus of customers, which significantly jeopardises its monetisation as well as its business model."

The tentative timeline shared by fintech major Paytm to resolve operational challenges coming in the way of its lending business and restart sanctioning of new loans is ending today, PTI reported. As per the report, Paytm Chief Operating Officer (COO) and President Bhavesh Gupta in a company conference call on February 1 had suggested that Pytm would not be issuing new loans for "maybe a couple of weeks" before resolving operational challenges posed due to RBI restriction Paytm Payments Bank Limited (PPBL).

While Paytm's lending business is not linked with PPBL, PTI suggested there are around 60,000-70,000 merchants, accounting for 10-15 per cent of Paytm merchants, who are estimated to have autopay mandate set up through their PPBL account.

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