Paytm founder Vijay Shekar Sharma: According to Forbes data of March 16, Paytm founder Vijay Shekhar Sharma is no longer a billionaire. Due to the continuous fall in the stock of its main Paytm parent company, due to which its stock has lost 70 per cent from the issue price of Rs 2,150.
The steep fall in the stock of the Noida-headquartered company indicates a lot of volatility within it. Only last week, the Reserve Bank of India (RBI) has banned Paytm Payments Bank from adding new customers.
88 crore daily loss to Sharma after listing
According to Forbes, Sharma’s wealth, which was at an all-time high of $2.35 billion before the IPO listing, has now come down to $999 million. Paytm’s parent company One97 Communications was listed on November 18, 2021. Since that day, Sharma is incurring a daily loss of around Rs 88 crore.
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Rs 18,300 crore was raised through IPO
The company had raised Rs 18,300 crore through IPO. On November 18, the company was among the top 50 companies in India with a value of Rs 1.39 lakh crore. But since then, its value has continued to decline. The market cap of the company has come down by around Rs 1 lakh crore to Rs 40,000 crore. The company is now ranked 112th among the highest valued companies.
What is the share of Sharma?
According to a company spokesperson, Sharma held around 8.9 per cent stake in One97 Communications in the December quarter. Axis Trustee Services Ltd. Sharma owns about 4.8 per cent of the shares held by the company. The value of this stake is Rs 5,558 crore.
The fall in the stock has increased after the RBI imposed restrictions on Paytm Payments Bank on adding new customers. The bank has been directed to appoint an IT audit firm to examine its information technology systems.
What the brokerage firm said
Brokerage firm Macquarie has said that the RBI’s decision will not have much impact on Paytm’s business. However, RBI’s move may set aside efforts to convert Paytm Payments Bank into a small finance bank.
According to the Macquarie report, “We do not expect the RBI’s move to have much impact on Paytm’s business. This is because Paytm has already been able to create a large customer base for its payments bank. This is expected to have an impact on the Paytm brand. It may also impact customer loyalty going forward.”
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