Paytm slumps as Macquarie sees risk from Mukesh Ambani’s financial foray

Shares of One 97 Communications, the parent of India’s leading digital payments brand Paytm, plunged to a record low on Tuesday after Macquarie Group analysts flagged risks from billionaire Mukesh Ambani’s foray into the financial services business.
Reliance Industries’ Jio Financial Services “can pose a significant growth and market-share risk” for players such as Paytm and Bajaj Finance, Macquarie analysts led by Suresh Ganapathy wrote in a note on Monday.
The shares fell more than 11% in Mumbai, to head for their lowest level since the company’s debut on exchanges last November. The stock has dropped about 75% from its listing price as Paytm’s losses widened and SoftBank Group Corp. lowered its stake in the company.
Reliance already has a non-banking finance company license which it can leverage to kickstart consumer and merchant lending in a big way, according to…

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