Paytm shares fall after PPSL CEO resigns

Shares of Paytm parent One97 Communications dropped over 1% in early trade on Tuesday after the company informed exchanges that a top executive of Paytm Payments Services Limited (PPSL) has resigned. Nakul Jain, the managing director and chief executive officer (CEO) of PPSL, announced his resignation late on Monday evening. PPSL is a wholly owned subsidiary of One97 Communications.

Reacting to the news, shares of Paytm fell 1.28% to ₹770.25 apiece on the BSE today. The stock opened a tad higher at ₹782.05, against the previous closing price of ₹780.20, with a market cap of 49,105.82 crore.

One97 Communications informed that Jain’s resignation will be effective from the close of business hours on March 31, 2025, or an earlier mutually agreed date, the company announced in a release on Monday late evening. Jain plans to focus on launching his own entrepreneurial venture. Meanwhile, PPSL is actively looking for a successor to the position and will announce the new appointment soon.

PPSL received approval from the Government of India, Ministry of Finance, Department of Financial Services, via a letter dated August 27, 2024, for downstream investment from the company, as informed by the company on August 28, 2024.

PPSL has resubmitted its PA application, following the FDI approval and while waiting for its approval, continues to provide payment aggregation services to its existing online merchants.

Earlier in January, One97 Communications reported a 6% YoY decline in net loss for the quarter ending December 31, 2024, amounting to ₹208 crore, compared to ₹222 crore in the same period last year. The fintech’s revenue dropped 36% YoY to ₹1,827 crore for the third quarter, down from ₹2,850 crore in the corresponding period last year.

The company recorded a ₹451 crore reduction in employee costs, excluding ESOP, for the first nine months of FY25, YoY, and is set to comfortably exceed its target of ₹400-500 crore in annualised people cost savings.