Paytm may not have a corporate governance issue, says Samir Arora of Helios Capital

Samir Arora says Paytm may have an issue but calling it a corporate governance issue is too harsh

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26 Aug, 2025 12:21

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Samir Arora, the founder of Helios Capital, said the banking regulator’s concerns may not be about corporate governance but rather the close link between the regulated bank and non-regulated fintech entities.

Paytm shares have plunged by their daily 20% limit for two straight days following the Reserve Bank of India imposing bans on Paytm Payments Bank accepting new deposits and carrying out credit transactions after February 29.

Arora said that corporate governance issues typically involve management taking advantage of minority shareholders or defrauding them, suggesting that labelling Paytm’s situation as a corporate governance issue might be excessive.

He said that Paytm Bank is supposed to be an independent entity with independent management and control, and Paytm supposedly had common top management and policies rather than the bank being managed independently.

“From the RBI’s point of view, the bank may be regulated, but the fintech entity is not, so these two have to be completely different,” he said. Regarding the impact of Paytm stock on his fund, Arora said their “NAV was ok on the previous day, considering one stock was down 20 percent because we have 35-40 names, and one name doesn’t spoil my sleep”.

Paytm’s shares fell more than 40 percent in the past two trading sessions. Brokerages have downgraded the stock and slashed its target price. Jefferies downgraded it from ‘buy’ to ‘underperform’ and cut the target price from Rs 1,050 to Rs 500. Macquarie also slashed the target price to Rs 650 while maintaining a ‘neutral’ outlook.

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