Paytm parent One97 Communications’ shares hit a fresh record low on Thursday. The Paytm stock fell nearly four percent to Rs 1,040.9 on BSE. AT this price, One97 shares traded at a discount of 51.6 percent to the issue price.
The stock is quoting lower for the eighth straight trading day, having fallen 21 per cent during this period.
IPO Flashback
Paytm shares began their journey in the secondary market on November 18, and have failed to cross their IPO price of Rs 2,105 ever since.
Paytm’s IPO – the biggest of all time in India – though oversubscribed saw a total booking of 1.9 times the shares on offer. Which means a lukewarm response from the investors given the robust interest for most IPOs in 2021.
On the listing day, One97 shares debuted on BSE and NSE at a discount of around nine percent each.
Market Cap
A sharp fall in the stock price has seen the company lose market capitalisation of Rs 70,418 crore from Rs 1.39 trillion on its issue price.
Paytm’s market capitalisation hit a low of Rs 68,960 crore in intra-day trade today.
The company stood at 77th position in the overall market cap ranking, the BSE data showed. On the listing day, it was at the 50th position.
Performance of the company
On Monday, Paytm reported a four-fold jump in loan disbursals to 44 lakh loans worth Rs 2,180 crore in Q3, as against 8.8 lakh loans worth Rs 470 crore in the year-ago period.
Paytm’s gross merchandise value (GMV) came in at Rs 2.5 lakh crore as against Rs 1.12 lakh crore in the corresponding period a year ago.
For the second quarter of FY22, Paytm reported an 8.5 percent rise in net loss on year to Rs 473 crore, despite a 63.6 percent jump in revenue to Rs 1,086.4 crore.
Comment from Paytm CEO
Vijay Shekhar Sharma, “The company’s share market performance has been in line with that of global peers in the sector over the past six months due to macroeconomic factors.
Macro factors like quantitative easing, free money due to US monetary policy and other parameters led to a spook in the market in terms of pricing the IPO.
Paytm’s shares have received a similar response to that of global peers in the last six months But that is not a complete reasoning. What happened to the IPO is still a question.”
Target Price
JPMorgan, Morgan Stanley and Goldman Sachs have initiated coverage on One97 Communications, the parent of Paytm, over the past two weeks giving a one-year target price for the stock between Rs 1,630 and Rs 1,875.
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