Paytm focuses on investor relations as stocks continue to fall
Paytm is in the process of hiring several senior executives for its investor relations division, the sources said.
Anuj Mittal was recently named vice president of its investor relations division, the sources added. Mittal, according to his LinkedIn profile, led strategy and investor relations at L&T Financial Services for nearly three years and previously worked with Standard Chartered Bank as well as JP Morgan.
Mittal reports to Paytm Chairman and Group CFO Madhur Deora, who will oversee the team for now.
Deora, which would be second in line after Paytm founder Vijay Shekhar Sharma, will focus more on profitability and growth, people familiar with the company’s plans said.
“With the current market situation and Paytm’s transition to a public company, there is a need for it to engage with major investors and analysts on a daily basis,” one person said.
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Paytm declined to comment on ET’s questions about it.
“There have been discussions about building and building a strong investor relations team for some time now. With the stock under pressure almost every day, there is a need to manage market perceptions as well as investors, which Paytm will be focusing heavily on moving forward,” a second person said. “While the company has tried to boost its stock sentiment by posting quarterly growth, there is still no bullish sentiment for its stock among retail investors.”
The shares fell 3% to Rs 535.6 each at the close of trading on BSE on Monday.
The BSE had recently sought clarification from Paytm on the steady decline in its share price. In its response, Paytm said there was “no information or announcements” that would “affect the price or volume behavior” of the stock. The BSE generally seeks clarification when a security loses significant value. Paytm’s share price is currently trading 75% below its issue price of Rs 2,150 when it listed in November last year.
In January, Sharma cited negative global macroeconomic trends as reasons for its stock performance. The Reserve Bank of India (RBI) suspended Paytm Payments Bank from onboarding new investors earlier this month. One97 Communications owns 49% of the bank.