Paytm stock slips 6% after proxy advisory firm opposes CEO's reappointment

Stock of Paytm (listed as One97 Communications) slipped over 6 per cent on Friday after shareholders of the firm were advised by the Institutional Investor Advisory Services India (IIAS) against the reappointment of Vijay Shekhar Sharma as its chief executive, and his remuneration.

The proxy advisory firm has said that Sharma had, in the past, made commitments that did not play out well.

Paytm shares slipped 6.12 per cent to Rs 775 against the previous close of Rs 825.50 on BSE.

The stock opened lower at Rs 820 today.

Shares of the digital payments firm were trading higher than 20-day, 50-day and 100-day moving averages but lower than 5-day and 200-day moving averages.

ALSO READ: Proxy advisory firm opposes Vijay Shekhar’s salary, reappointment to Paytm board

However, the stock has lost 40.57 per cent in 2022 but risen 14 per cent in a month. Market cap of Paytm fell to Rs 51,531 crore on BSE.

Total 3.40 lakh shares of the firm changed hands amounting to a turnover of Rs 26.79 crore. The stock hit a 52-week high of Rs 1961.05 on November 18, 2021 and a 52-week low of Rs 511 on May 12, 2022.

IIAS spoke about the massive fall in Paytm shares from the issue price resulting in destruction of wealth for shareholders.

The stock has lost over 63 per cent from its IPO issue price of Rs 2,150. The IPO of the firm was open from November 8, 2021 to November 10, 2021. 

Shares were offered in a price band of Rs 2,080 to Rs 2,150 during the IPO.The IPO was subscribed 1.89 times on the last day. The public issue was subscribed 1.66 times in the retail category, 2.79 times in the QIB category, and 0.24 times in the non-institutional investors category.

The firm said that they believe that the board must consider professionalising the management, according to a report in the Economic Times.