Paytm Removed From MSCI India Index Amid Declining Market Cap

Share via:

SUMMARY

The MSCI India Index had 13 additions and three deletions in the May review, with Paytm among the deleted ones and PB Fintech being added to the index

Paytm, which has now been added to the MSCI India Domestic Small Cap Index, said the reclassification reflects the changes in the company’s market capitalisation

Paytm’s market capitalisation has more than halved to $2.6 Bn since the end of January following the RBI’s crackdown on Paytm Payments Bank

Amid the sharp fall in its market capitalisation, fintech major paytm’s parent One 97 Communications has been removed from the MSCI India Index.

The MSCI India Index had 13 additions and three deletions in the May review, with Paytm among the deleted ones and PB Fintech being added to the index.

Besides Paytm, Berger Paints India and Indraprastha Gas have been removed from the list, while Canara Bank, Indus Towers, Jindal Stainless JSW Energy, and Mankind Pharma are among the new additions.

It is pertinent to note that following the Reserve Bank of India’s (RBI’s) regulatory restrictions on certain banking activities of Paytm Payments Bank, the shares of One 97 Communications have been under massive selling pressure. 

Recently, rejigs at Paytm’s top management further added to the woes. Since the end of January this year, Paytm’s market capitalisation has more than halved to $2.6 Bn.

On the other hand, helped by the company’s steadily improving business fundamentals, PB Fintech, the parent company of insurtech major Policybazaar, has been on an uptrend.

The company’s market valuation has increased 60% so far in 2024. Currently, PB Fintech has a market cap of $6.8 Bn.

While Paytm has been removed from the MSCI India Index, it has now been added to the MSCI India Domestic Small Cap Index. 

Following the addition, the fintech major said in a statement that its inclusion in the MSCI Small Cap Index “reflects confidence”.

“OCL stock has been reclassified from MSCI India Index (Large and Mid Cap companies) to MSCI small-cap. The move is part of the routine index review conducted by MSCI, a process that periodically adjusts the composition of its indices to match the evolving market conditions and sizes of listed companies,” the statement said.

“The reclassification reflects changes in Paytm’s market capitalisation, aligning it with other entities in the small-cap segment as defined by MSCI,” it added.

As per the MSCI Index’s statement, all the new adjustments will take place at the close of May 31, 2024. 

Shares of Paytm ended Wednesday’s trading session 1.05% higher at INR 343.25 on the BSE, while PB Fintech gained 3.61% to close at INR 1,273.35.




Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Paytm Removed From MSCI India Index Amid Declining Market Cap

SUMMARY

The MSCI India Index had 13 additions and three deletions in the May review, with Paytm among the deleted ones and PB Fintech being added to the index

Paytm, which has now been added to the MSCI India Domestic Small Cap Index, said the reclassification reflects the changes in the company’s market capitalisation

Paytm’s market capitalisation has more than halved to $2.6 Bn since the end of January following the RBI’s crackdown on Paytm Payments Bank

Amid the sharp fall in its market capitalisation, fintech major paytm’s parent One 97 Communications has been removed from the MSCI India Index.

The MSCI India Index had 13 additions and three deletions in the May review, with Paytm among the deleted ones and PB Fintech being added to the index.

Besides Paytm, Berger Paints India and Indraprastha Gas have been removed from the list, while Canara Bank, Indus Towers, Jindal Stainless JSW Energy, and Mankind Pharma are among the new additions.

It is pertinent to note that following the Reserve Bank of India’s (RBI’s) regulatory restrictions on certain banking activities of Paytm Payments Bank, the shares of One 97 Communications have been under massive selling pressure. 

Recently, rejigs at Paytm’s top management further added to the woes. Since the end of January this year, Paytm’s market capitalisation has more than halved to $2.6 Bn.

On the other hand, helped by the company’s steadily improving business fundamentals, PB Fintech, the parent company of insurtech major Policybazaar, has been on an uptrend.

The company’s market valuation has increased 60% so far in 2024. Currently, PB Fintech has a market cap of $6.8 Bn.

While Paytm has been removed from the MSCI India Index, it has now been added to the MSCI India Domestic Small Cap Index. 

Following the addition, the fintech major said in a statement that its inclusion in the MSCI Small Cap Index “reflects confidence”.

“OCL stock has been reclassified from MSCI India Index (Large and Mid Cap companies) to MSCI small-cap. The move is part of the routine index review conducted by MSCI, a process that periodically adjusts the composition of its indices to match the evolving market conditions and sizes of listed companies,” the statement said.

“The reclassification reflects changes in Paytm’s market capitalisation, aligning it with other entities in the small-cap segment as defined by MSCI,” it added.

As per the MSCI Index’s statement, all the new adjustments will take place at the close of May 31, 2024. 

Shares of Paytm ended Wednesday’s trading session 1.05% higher at INR 343.25 on the BSE, while PB Fintech gained 3.61% to close at INR 1,273.35.




Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

US arrests man allegedly behind enormous botnet that enabled...

It’s a scheme that “reads like it’s ripped...

Creator fintech Slingshot raises $2.2 million

Sanil Chawla remembers the meetings he had with...

Celo integrates Chainlink's CCIP interoperability protocol

The Ethereum layer-2 solution is leveraging Chainlink for...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!