INSUBCONTINENT EXCLUSIVE:
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.
