Shares of One 97 Communications Ltd1 (Paytm) tanked nearly 15% to Rs 1586.25 per share against its listing price soon after making a 'tepid' debut on the bourses. Paytm stock was trading with Rs 250 discount on its listing price at Rs 1704.05 around 11.15 am. At curent price of Rs 1704.05, this was also a decline of 20.74% or Rs 445.95 from issue price of Rs 2150. Overall. the shares corrected nearly 25% from its issue price of Rs 2150 on the BSE in Thusday's intraday trade.  

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Earlier, Shares of One 97 Communications Ltd1 (Paytm) made a tepid listing as anticipated by the analysts and Zee Business Managing Editor Anil Singhvi. Stocks of India's biggest initial public offer (IPO) ever, Paytm, was listed on the Bombay Stock Exchange (BSE) at 9% discount on Wednesday. Paytm stocks opened at Rs 1,955 per share against its issue price of Rs 2,150 on BSE on Thursday. This was decline of 9.07% or Rs 195.  

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Largely analysts and brokerages have predicted a weak debut for Paytm, citing it a cash-burning business model and stating that Internet/digital startups are not about profit or revenue. They have also highlighted how it is a loss-making company currently with a loss of Rs. 4,230.9 crore in FY19, which was reduced to Rs. 1,701 crore in FY21.

Also, on the day of the listing, global financial services group Macquarie has downgraded its rating to 'underperform' and gave a target price of RS 1,200. "Paytm’s business model lacks focus & direction. Achieving scale with profitability is a big challenge.  Company is a cash guzzler. Besides, regulations & competition are added worries for this firm," Macquarie said in its report.

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