Paytm falls for 10th day in a row to hit new all-time low, longest losing streak since listing; what's behind the crash?

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₹317.15 apiece in today's session as it was locked in the 5% lower circuit limit. The stock's previous all-time low of ₹318 was recorded in mid-February. Today's downturn in One 97 Communications marks the 10th consecutive session of losses for the stock, which was the longest losing streak since listing in November 2021.

During this period, the stock has fallen from ₹391.35 apiece to today's closing price of ₹317, translating into a drop of nearly 19%. Also Read: These 300 stocks fall over 10% from their 52-week highs. Time to be cautious? Aditya Birla Finance, a significant lending partner for the company, is reported to have exercised loan guarantees provided by the fintech firm.

This action follows repayment defaults from customers, as per sources familiar with the matter, cited by The Economic Times. Additionally, Piramal Finance and Clix Capital have terminated their partnerships with Paytm, indicating challenges in the company's lending business. These decisions come in the wake of the central bank's ban on Paytm Payments Bank and a broader slowdown in unsecured consumer lending, as reported by the same sources.

Also Read: Paytm's share in UPI market declines to 9% in March, lowest in last 4 years One source familiar with the matter told ET that Aditya Birla Finance may have invoked a substantial sum, potentially amounting to hundreds of crores of rupees. This development is expected to significantly impact the company's financials, especially amidst increased regulatory scrutiny from the central bank in the sector. In response to ET's inquiries, a spokesperson from Paytm said, "We categorically reject all speculations concerning our lending business.