Paytm shares register fall of over 13% after lock-in period expires of anchor investors
Noida – The digital payments platform Paytm’s parent company One97 Communication has its shares take a fall of 13.22 percent after the expiry of the lock-in period for its anchor investors on Wednesday. In early trade, the stock registered lowest mark in a single day of Rs 1,297.70. At 9:57 am, Paytm stock plunged by 9.25 percent to trade at Rs 1,357.15. During the opening trade on Wednesday, the scrip plunged 13.37 percent to Rs 1,296.00 per piece on the National Stock Exchange (NSE). Furthermore, on the BSE it fell 13.22 percent to Rs 1297.70.
However, the stock gained back some of its early losses and recorded a drop of around 9 percent lower in the trade late morning. At 10:32 am, it was trading at Rs 1358.00, down 9.19 percent. On NSE, it was at Rs 1,363.40, down 8.87 percent.
Last month, in India’s largest IPO (initial public offering), Paytm shares had registered a crash of more than 27 percent. Since its listing on November 22, the Paytm shares have logged in losses in 13 sessions out of 18 sessions.
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What really is the reason behind consistent losses to Paytm? Experts say it is because of companies’ over-ambitious valuations. Paytm, whose investors include SoftBank and Ant Group, has raised $2.5 billion in its IPO, out of which $1.1 billion fund was from institutional investors. Big shot investors in the digital payment firm, that is owned by One97 Communication, include Warren Buffett’s Berkshire Hathaway Inc. and Masayoshi Son’s SoftBank Group Corp.
Paytm had reported a net loss of Rs 473 crore in the September quarter as compared to a loss of Rs 437 crore in the same period last year.
Revenue gained from operations in the second quarter (Q2) of the current fiscal was registered at Rs 1,086 crore, as compared to Rs 664 crore in the same period one year ago. This marks a growth of 64 per cent.
