Paytm's initial public offering (IPO) was priced at Rs 2,150.New Delhi: Shares of One 97 Communication -- Paytm's parent company -- fell more than 3 per cent on Friday.
The stock slipped 3.35 per cent to Rs 555.10 during late morning deals.
It had surged 9.52 per cent to close at Rs 574.35 on Thursday.
The digital payment firm pulled off the largest-ever initial public offering (IPO) in India, but has since faced many challenges.
The IPO was priced at Rs 2,150.
Paytm shares had touched a record low of Rs 520 on Wednesday (March 23), 75.81 per cent lower than its issue price.The stock has been under tremendous selling pressure after a range of analysts and trading experts raised concerns about the company's valuation.
Further, stock exchange BSE had sought clarification from Paytm on "significant" price movement."We would like to reiterate that the company is committed to comply with the Listing Regulations and any information/announcement, likely to have bearing on the price/volume of the shares of the company would be disclosed, from time to time, to the stock exchanges within stipulated timeline," Paytm had said in its reply."Paytm reached new lows, as per the data if we see it has eroded about 75 per cent of investors' wealth over time.
The company has wiped out more than Rs 1.03 lakh crore market cap with several events like RBI barring the onboarding of new customers and brokerages downgrading its price.
We can expect a further fall in prices as there is no support, it might fall to Rs 425 levels which might be scary for investors.
Buying is suggested after some price reversals with a proper base formation and crossing above Rs 800 levels.
Fundamentally a good quarterly result along with proper business guidance might drive up the prices which might be a good time to buy," said Manoj Dalmia, Founder and Director, Proficient Equities Ltd."Paytm stock is in a continuous downtrend on negative sentiments and may touch the levels of Rs 500-450 in the near term.
Investors must avoid this stock for time being," said Ravi Singh, Vice-President and Head of Research, ShareIndia.