The shares of One97 Communications, which operates the payments platform Paytm, hit an all-time intra-day low of Rs 476.65 apiece before closing at Rs 477.1 on Tuesday, down over 11 per cent from their previous close.
The company’s market capitalisation (m-cap) was Rs 30,971 crore at close on Tuesday – down by over Rs 1 trillion since the time of the issue.
Compared with the issue price of Rs 2,150, the company’s share price has fallen nearly 78 per cent. The m-cap, which was over Rs 1.38 trillion at the time of the launch of the IPO, has declined 77 per cent in just over a year.
Compared with Rs 1.01 trillion on the day of the listing, the m-cap is down over 69 per cent. The company listed on the bourses at a discount of 9 per cent at Rs 1,950 per share on November 18, 2021. On the same day, the shares closed 27 per cent lower than the listing price at Rs 1,564 per share.
Paytm’s shares fell on Tuesday after Macquarie’s note, written on Monday, stated that the company could have a “market share risk” from Jio Financial Services. “Jio Financial not only can offer attractive rates in merchant lending and digital unsecured lending markets, but also be reasonably competitive in the secured lending market eventually,” the note read.
Moreover, the company’s lock-in period ended on November 15, releasing 86 per cent of its shares for trading. Since then, the share price is down 24 per cent, according to data from BSE.