One97 Communications shares decline 5%; hit lower circuit limit

New Delhi: Shares of One97 Communications, Paytm's parent company, declined 5 per cent on Monday after its president and chief operating officer Bhavesh Gupta resigned from the company.

The fintech firms' stock tanked 4.99 per cent to Rs 351.70 -- its lower circuit limit -- on the BSE.

On the NSE, it dropped 5 per cent to Rs 351.40 -- the lowest trading permissible limit for the day.

Paytm's parent company One97 Communications president and chief operating officer Bhavesh Gupta has resigned from the company, an official statement said on Saturday.

Gupta was steering the lending business, online and offline payments, and compliances, among others, at Paytm. Verticals, headed by him, were adversely impacted by the RBI's ban on Paytm Payments Bank (PPBL) from carrying on new transactions.

"Bhavesh Gupta, President and Chief Operating Officer, who was overseeing the payments and lending businesses, has decided to take a career break due to personal reasons. He will be transitioning to an advisory role, offering guidance for Paytm's growth initiatives until the end of the year," the statement said.

Gupta joined Paytm in August 2020 from Clix Capital, formerly GE Capital.

He will be relieved from the services of the company on May 31.

Paytm had estimated a Rs 300-500 crore loss due to the RBI's restriction on PPBL.